Trump Vows to Use Reported Venezuelan Oil Deal to Refill US Strategic Reserve

Former President Donald Trump stated on Sunday that oil secured through a reported deal with Venezuela will be used to refill the U.S. Strategic Petroleum Reserve (SPR). The announcement was made in a post on his Truth Social platform, according to a report from Investing.com.

Plan to Replenish SPR

Trump asserted his intention to address the current level of the nation's emergency crude supply, which he characterized as "almost completely depleted" by the Biden administration. "One of the things I plan to do with Venezuelan oil is to replenish the national strategic reserves," Trump wrote.

The U.S. Strategic Petroleum Reserve currently holds 289.7 million barrels, which is approximately 40% of its total capacity. The source notes that the reserves were drawn down under both the Trump and Biden administrations in efforts to manage domestic fuel prices.

Trump added that the refilling process would "begin soon" and described the oil as a "gift from Venezuela to the American people."

Details of the Reported Agreement

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The plan hinges on a major agreement reportedly announced last Friday. According to the source, the deal would grant the U.S. majority control over 65 billion barrels of Venezuelan crude oil.

The report describes the agreement as a deal between the U.S. and private sector companies in Venezuela. It is projected to create the world's second-largest private oil company and secure a long-term oil supply for the United States.

Context for Investors

The SPR is the world's largest government-owned stockpile of emergency crude, and its levels are closely watched by energy markets. Significant drawdowns in recent years were executed to counter supply chain disruptions and combat rising gasoline prices.

A large-scale influx of Venezuelan crude into U.S. reserves, if realized, would represent a significant shift in energy policy. Such a development could have substantial implications for global oil supply dynamics and pricing, though the feasibility and final terms of the reported deal have not been independently confirmed.