In a series of dramatic events in the first week of 2026, President Trump announced plans to take control of a large portion of Venezuela’s oil supply. This comes shortly after a U.S. military operation led to the capture of President Nicolas Maduro.
Here are the latest updates on the oil situation:
“Turnover” Plan
On Tuesday, January 6, 2026, President Trump posted on Truth Social that Venezuela’s “interim authorities” would hand over 30 million to 50 million barrels of oil to the United States.
Goal: The oil would be sold at market prices (currently around $56 per barrel), potentially generating up to $2.8 billion.
Control: Trump said he would personally control the proceeds to benefit the people of both Venezuela and the United States.
Implementation: Energy Secretary Chris Wright has been ordered to implement the plan “immediately,” which is expected to allow storage ships to bring oil directly to U.S. docks.
Where is the oil coming from?
The oil that is being “dumped” is not necessarily new production. Much of it is:
Onshore storage: Venezuela has about 48 million barrels of storage capacity, which is mostly full due to recent export blockades.
Seized tankers: 15 million to 2 million barrels of crude oil are currently sitting on tankers previously blocked from shipping.
Market and geopolitical implications
Oil prices: U.S. crude oil prices (WTI) fell about 1.6% to 2% on the news, as traders worried about increased supply.
Infrastructure: Trump meets with US oil majors (Exxon, Chevron, ConocoPhillips) to discuss a multi-billion dollar plan to repair Venezuela's crumbling oil infrastructure.
Shift from China: The move is expected to shift heavy crude from China, Venezuela's former largest buyer, to US refineries on the Gulf Coast.
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