Trump Announced the Biggest Oil Deal Ever: Why Did Prices Jump?
President Donald Trump said the United States secured majority control of more than 65 billion barrels of Venezuelan oil reserves. He announced the deal on August 28, calling it the biggest oil deal in history.
Brent crude, however, did not fall on the news. The benchmark instead climbed from about $88 to $90.48 by Monday, defying the deal's promised supply boost.
The Barrels Are Reserves, Not Supply
The agreement gives a private venture a 100-year lease on 17 Venezuelan oil fields. The US holds a 55% stake in that venture, a US official told Newsweek.
Interim President Delcy Rodriguez said the fields hold proven potential of 65 billion barrels. She said the venture could draw more than $100 billion in investment.
None of that oil is flowing yet. Venezuela once pumped more than 3 million barrels a day in the late 1990s.
Output now sits close to 1 million barrels a day, according to OPEC data.
Rystad Energy projects production could rise only 17% by 2028. That growth depends on heavy investment in decayed infrastructure.
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