Trump says Venezuelan oil will replenish US emergency reserves

US President Donald Trump says oil secured under a new agreement with Venezuela will be used to rebuild the United States' Strategic Petroleum Reserve, which has fallen to its lowest level in decades.

Trump made the announcement in a post on Truth Social, saying the replenishment of the emergency stockpile would begin soon. He described the Venezuelan oil as a "Gift from Venezuela to the People of the United States" and blamed former President Joe Biden for leaving the reserve "virtually" empty.

However, it remains unclear when Venezuelan crude could begin flowing into the reserve or whether the agreement will have any immediate impact on fuel prices for American motorists.

The deal announced by Trump on Friday is primarily intended to revive Venezuela's heavily damaged oil industry. Increasing production will require substantial investment, repairs to infrastructure and improvements to the country's energy operations.

The US Strategic Petroleum Reserve contained about 290 million barrels as of August 21, according to the figures cited in the report. That represents a near 44-year low after successive drawdowns under both the Biden and Trump administrations.

The reserve has been used to help respond to major disruptions in global energy supplies, including the economic impact of Russia's invasion of Ukraine and the current US-Israel war with Iran.

Venezuela's interim President Delcy Rodriguez said the agreement with Washington would run for 25 years and involve the development of 17 strategically important oilfields.

Rodriguez said the initial production target would be 1.5 million barrels per day, with plans also calling for eight new oil blocks to be developed as part of a broader expansion of Venezuela's energy sector.

She stressed that Venezuela would retain ownership of its natural resources and sovereignty over them while benefiting from foreign capital, technology and operational expertise to rebuild its oil industry.

Under the proposed arrangement, Caracas would receive $19 for every barrel of Venezuelan oil produced and sold to the United States. Rodriguez said the arrangement could generate as much as $209 billion annually for Venezuela, depending on production levels and global oil prices.

The agreement marks a significant shift in Venezuela's relationship with Washington after years of sanctions that severely restricted investment and production in the country's oil sector.

Caracas has faced intense pressure from the Trump administration since January, when US special forces abducted then-President Nicolas Maduro. Venezuela's Supreme Court subsequently transferred presidential authority to his vice president, Rodriguez.

The new oil agreement could provide Venezuela with access to the investment and technology needed to rebuild its energy industry while giving the United States a potential new source of crude for replenishing its emergency reserves.