US will control Venezuela oil sales ‘indefinitely’, official says

While White House press secretary Karoline Leavitt said the two sides had struck a deal, Venezuela’s state-run oil company PDVSA said in a statement that negotiations over oil sales were ongoing within the framework that exists between the two countries.

“This process is based on similar rules to those in force with international companies,” it said.

The comments came after US President Donald Trump announced on social media on Tuesday that Venezuela would be “turning over” up to 50 million barrels of oil to the US, and it would be sold at its market price.

The White House said the money would be deposited into US-controlled accounts, which Trump said he as president would control and use to benefit the people of Venezuela and the US.

White House officials said on Wednesday that they had already taken steps to start marketing the oil and the administration was working with key banks and commodity firms to execute the sales.

As part of the plan, the US is preparing to “selectively” roll back American sanctions, which have restricted sales of Venezuelan crude for decades.

“We’re going to let the oil flow,” Wright said, speaking at a conference with energy executives in Miami. He added that the money would then “flow back into Venezuela”.

“We are not stealing anyone’s oil,” he added later in an appearance on CNBC, in which he said the administration’s first priority for the funds was to stabilise the country’s economy.

US Secretary of State Marco Rubio said the aim was to disburse the money “in a way that benefits the Venezuelan people – not corruption, not the regime – so we have a lot of leverage to move on the stabilisation front”.

Analysts said the impact of resuming oil sales would depend on the details.

But the plan drew swift criticism from Democrats, with Senator Chris Murphy of Connecticut calling it “insane”.

“They are talking about stealing the Venezuelan oil at gunpoint for a period of time undefined as leverage to micromanage the country,” he told reporters. “The scope and insanity of that plan is absolutely stunning.”