Venezuela to export $2 billion worth of oil to US in deal with Washington :

Venezuela to export $2 billion worth of oil to US in deal with Washington .

By Marianna Parraga and Erin Banco | Reuters | ....

• Deal to redirect Venezuelan oil exports to US from China
• Trump says agreed volume to supply is 30-50 million barrels
• Exports expected to stem further cuts to Venezuelan output
• Chevron only US firm currently authorized to export Venezuelan oil
• US Interior Secretary says US Gulf refiners would take advantage

HOUSTON/WASHINGTON, Jan 6 (Reuters) - Caracas and Washington have reached a deal to export up to $2 billion worth of Venezuelan crude to the United States, U.S. President Donald Trump said on Tuesday, a flagship negotiation that would divert supplies from China while helping Venezuela avoid deeper oil production cuts.

The agreement is a strong sign that the Venezuelan government is responding to Trump's demand hat they open up to U.S. oil companies or risk more military intervention. Trump has said he wants interim President Delcy Rodriguez to give the U.S. and private companies "total access" to Venezuela's oil industry.

Venezuela has millions of barrels of oil loaded on tankers and in storage tanks that it has been unable to ship due to a blockade on exports imposed by Trump since mid-December.

The blockade was part of rising U.S. pressure on the government of Venezuelan President Nicolas Maduro that culminated in U.S. forces capturing him this weekend. Top Venezuelan officials have called Maduro's capture a kidnapping and accused the U.S. of trying to steal the country's vast oil reserves.

Venezuela will be "turning over" between 30 and 50 million barrels of "sanctioned oil" to the U.S., Trump said in a social media post.

"This Oil will be sold at its Market Price, and that money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the people of Venezuela and the United States!," he added.

U.S. Energy Secretary Chris Wright is in charge of executing the deal, Trump said, adding that the oil will be taken from ships and sent directly to U.S. ports.

Supplying the trapped crude to the U.S. could initially require reallocating cargoes originally bound for China, two sources had told Reuters earlier on Tuesday. The Asian country has been Venezuela's top buyer in the last decade and especially since the United States imposed sanctions on companies involved in oil trade with Venezuela in 2020.

"Trump wants this to happen early so he can say it is a big win," an oil industry source said.

CHEVRON IN CONTROL OF VENEZUELAN OIL FLOWS TO US
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U.S. crude prices fell more than 1.5% after Trump's announcement, with the agreement expected to increase the volume of Venezuelan oil exported to the U.S.

That flow of oil is currently controlled entirely by Chevron (CVX.N), opens new tab, PDVSA's main joint venture partner, under a U.S. authorization.

Chevron, which has been exporting between 100,000 and 150,000 barrels per day (bpd) of Venezuelan oil to the U.S., is the only company that has been loading and shipping crude without interruption from the South American country in recent weeks under the blockade.

It was not immediately clear if Venezuela would have any access to proceeds from the supply. Sanctions mean PDVSA is excluded from the global financial system, its bank accounts are frozen and it is blocked from executing transactions in U.S. dollars.