President Donald Trump announced that the United States will acquire between 30 to 50 million barrels of sanctioned oil from Venezuela. Coming a day after captured Venezuelan president, Nicolas Maduro, appeared in court in New York, Trump's announcement is the latest of the US's mounting pressure on the Latin American country.
Trump, in a Truth Social post on Tuesday, said that the sanctioned oil will be bought by the United States at market price and the money will be "controlled" by him to ensure it "is used to benefit the people of Venezuela and the United States!" Trump revealed that he has already instructed Energy Secretary Chris Wright to put the plan in motion.
Trump's announcement regarding the handover of the massive amount of oil, somewhere between 1.26 billion gallons and 2.1 billion gallons. Given that Trump said the oil will be procured at market price from Venezuela, it has sparked questions around how much it will cost the US. Let's discuss.
How Much Will 30 To 50 Million Barrels Of Oil Cost?
Reuters reported that oil prices declined by up to $1 per barrel in both the international as well as the United States exchanges. The price of oil on the US West Texas Intermediate crude index fell by 1.37%, to $56.35 a barrel.
{{/usCountry}}Reuters reported that oil prices declined by up to $1 per barrel in both the international as well as the United States exchanges. The price of oil on the US West Texas Intermediate crude index fell by 1.37%, to $56.35 a barrel.
{{/usCountry}}Also read: ‘Money controlled by me’: Venezuela to turn over 30-50 million barrels of oil to US, says Trump
Meanwhile, the international exchange rates in the Brent crude futures fell by 1% to $60.09 per barrel. Thus, the average cost of crude oil per barrel in both the international and the US market is hovering between $58-$56 per barrel.
Given that Trump announced the acquisition of 30 million to 50 million barrels of sanctioned oil, it is expected to cost the US between $1.8 billion to 3.0 billion total, with a rate of $60 per barrel of crude oil secured.
"I have asked Energy Secretary Chris Wright to execute this plan, immediately," Trump said. "It will be taken by storage ships, and brought directly to unloading docks in the United States."