Energy

Trump says US will refill Strategic Petroleum Reserve using Venezuelan oil

Photo caption: Oil platforms and pumpjacks at Lake Maracaibo, as residents around the oil‑rich center of Maracaibo in Zulia state remain uncertain about new investments following recent legislative reforms allowing greater private participation in PDVSA and aimed at revitalizing the country’s struggling oil sector, in Cabimas, Venezuela, January.

 

U.S. President Donald Trump said on Sunday that oil ​from a recently struck deal with Venezuela ‌will be used to replenish the Strategic Petroleum Reserve, which has been drawn down sharply in recent ​years to respond to global supply ​disruptions and high fuel prices.

Trump said ⁠in a social media post that the “topping ​out” process will begin shortly, describing the Venezuelan ​oil as a “Gift from Venezuela to the People of the United States.”

It is unclear how quickly the ​Venezuela deal could provide oil for the ​reserve or deliver any near-term benefit to U.S. motorists. ‌The ⁠agreement Trump announced on Friday is aimed at reviving Venezuela’s battered oil industry, but it will require significant investment and infrastructure work before production ​can rise ​substantially.

The ⁠reserve held about 290 million barrels as of August 21, near ​a 44-year low, after the United ​States ⁠drew down its stockpile under both the Biden and Trump administrations in response to global ⁠supply ​disruptions, including Russia’s invasion of ​Ukraine and the conflict with Iran.

 

 

 

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