Top energy trader hails Trump’s Venezuela oil deal as a ‘generational win’ for gas prices
Developed over time first seen 4 hours ago
President Donald Trump says the United States has agreed to obtain majority control of more than 65 billion barrels of Venezuelan oil reserves through a public-private partnership. Oil trader Phil Flynn described the proposed arrangement as a “generational win”, arguing it could expand supply, reduce geopolitical risk and eventually put downward pressure on US petrol prices; however, those claims and the deal’s expected benefits are presented as the views of Trump administration officials and Flynn.
Trump said the agreement was negotiated by Secretary of State Marco Rubio and Secretary of War Pete Hegseth with Venezuela’s interim president, Delcy Rodriguez, and would cost US taxpayers nothing. He claimed it would more than double US oil reserves and lower fuel prices in the long term, while Flynn warned motorists should not expect an immediate fall at the pump. The announcement follows a US operation in January that, according to the article, captured former Venezuelan leader Nicolás Maduro and preceded a transition of power.
- Trump announces majority US control over Venezuelan oil reserves.
- Supporters predict long-term lower US petrol prices.
- An oil trader cautions against immediate savings at the pump.
Full account
President Donald Trump has announced an agreement with Venezuela which he says will give the United States majority control over oil associated with more than 65 billion barrels of the country’s proven reserves. Trump described it as the largest oil arrangement in history and said it had been negotiated by Secretary of State Marco Rubio and Secretary of War Pete Hegseth with Venezuela’s interim president, Delcy Rodríguez. He said the arrangement would use a private-sector partnership, require no taxpayer funding and eventually expand US supply while reducing petrol prices.
Oil trader Phil Flynn welcomed the announcement in an interview with Fox & Friends Weekend, calling it a “generational win” for Americans and Venezuela alike. He argued that American expertise and technology could develop Venezuelan fields more effectively than they have been in the past, and suggested the reserves could ease concerns about drawdowns from the US Strategic Petroleum Reserve. Flynn nevertheless cautioned that drivers should not expect an immediate reduction at filling stations, although he thought the announcement could exert some downward pressure on prices through market expectations.
A report drawing on information from an unnamed US official said Washington would hold an effective 55% interest in production from a newly created company covering 17 Venezuelan oilfields. That would amount to an interest in oil eventually extracted, rather than instant access to 35.75 billion barrels. The agreement is also said to permit the US to buy Venezuelan crude at cost, potentially giving American purchasers access to cheaper supplies if output rises substantially.
The prospect of lower prices remains dependent on a difficult rebuilding of Venezuela’s oil industry. Years of underinvestment and mismanagement have damaged capacity, while much of the country’s crude is exceptionally heavy and requires lighter hydrocarbons before it can move through pipelines and reach export facilities. Analysts have said major drilling, repairs, infrastructure upgrades and investment would be needed over several years. The announcement comes amid higher fuel costs linked to disruption in global energy markets during the Iran war; one report cited an AAA national average of $4.08 per gallon for regular petrol, compared with $3.20 a year earlier.
Where outlets differ
The first report centres on Flynn’s favourable assessment and his argument that Venezuela could function as a vast strategic reserve, while the second gives more detail on the proposed ownership structure and the 17 fields involved.
The second report places greater emphasis on practical constraints, including the time, infrastructure and investment needed to increase output; the first focuses more heavily on the political claims made by Trump, Rubio and Flynn.
Both reports say pump prices are unlikely to fall straight away, but the second provides a specific current petrol-price comparison and industry analysis of Venezuela’s technical production problems.
More coverage