WASHINGTON: US President Donald Trump has said oil from a recently announced deal with Venezuela will be used to replenish the country’s Strategic Petroleum Reserve (SPR), which has fallen sharply in recent years amid efforts to cushion the impact of global supply disruptions and high fuel prices.
In a social media post on Sunday, Trump said the process of “topping out” the reserve would begin shortly, describing the Venezuelan crude as a “Gift from Venezuela to the People of the United States.”
However, it remains unclear how quickly Venezuelan oil could reach the US reserve or whether the arrangement would provide any immediate relief to American motorists.
The agreement announced by Trump on Friday is intended to revive Venezuela’s severely weakened oil industry. Industry analysts say substantial investment and infrastructure rehabilitation will be required before Venezuela can significantly increase crude production and exports.
The development comes as US crude inventories in the Strategic Petroleum Reserve remain near a multi-decade low. The reserve held approximately 290 million barrels as of August 21, close to its lowest level in about 44 years.
The United States has drawn down the SPR under both the Biden and Trump administrations in response to major disruptions in global energy markets, including the fallout from Russia’s invasion of Ukraine and the conflict involving Iran.
Rebuilding the reserve with Venezuelan crude could provide Washington with an additional source of supply while supporting efforts to restore Venezuela’s oil production capacity. However, the scale and timing of any increase in Venezuelan output remain uncertain.
The plan also highlights the strategic importance of Venezuela’s vast oil resources to US energy policy, as Washington seeks to strengthen supply security amid heightened geopolitical risks and volatility in international oil markets.
By Reuters
