The White House has announced that it continues to work on finalizing energy deals with Venezuela, indicating ongoing diplomatic efforts between the two nations. The statement suggests that negotiations are progressing as both countries work to establish formal energy cooperation agreements.

Ongoing Negotiations

According to the White House statement, officials are actively engaged in "ironing out" the details of energy deals with Venezuela. This language suggests that while agreements may be in advanced stages, final terms and conditions are still being negotiated and refined.

Energy Cooperation Framework

The confirmation of continued negotiations indicates that energy cooperation remains a priority in US-Venezuela relations. These discussions represent efforts to establish structured energy agreements that could benefit both nations' energy sectors and broader economic interests.

The White House's acknowledgment of ongoing negotiations demonstrates the administration's commitment to pursuing diplomatic solutions and energy partnerships in the region. The outcome of these discussions could have implications for future energy cooperation between the United States and Venezuela.

Oil prices edged higher as the US Department of Energy announced expanded measures regarding Venezuelan oil trade, including indefinite control over future crude sales and the seizure of additional sanctioned tankers. This represents a significant escalation from the initial selective sanctions rollback.

Market Response and Price Movement

West Texas Intermediate traded around $56.00 per barrel following the announcement, recovering from a 4.00% decline over the previous two sessions. Brent crude settled below $60.00 per barrel as traders assessed the implications of expanded US control over Venezuelan energy assets.

Enhanced US Control Framework

US Energy Secretary Chris Wright outlined the administration's comprehensive approach, stating the US will initially offer stored crude before transitioning to Venezuelan supply sales. The Energy Department confirmed that Venezuelan oil is already being actively marketed under this expanded framework.

Corporate Engagement and Negotiations

Venezuela's state oil company has entered negotiations with Washington regarding crude sales through a framework similar to existing arrangements with Chevron Corp., the only US major currently operating in the country. Multiple energy companies are positioning for expanded Venezuelan operations.

Citgo Petroleum Corp., the US refiner indirectly owned by Venezuela, is considering resuming purchases for the first time since sanctions severed supply chains in 2019. Trafigura Group has also expressed interest in Venezuelan crude operations, while Chevron is negotiating with the US to extend its operational license.

Financial Framework and Revenue Distribution

Trump announced that Venezuela would relinquish up to 50.00 million barrels to the US, representing a value exceeding $2.00 billion. The administration has established a structured revenue-sharing mechanism with proceeds benefiting both countries.

Industry Rebuilding Initiative

President Trump is actively pushing for US companies to rebuild Venezuela's deteriorated energy infrastructure, which has suffered from years of neglect. The administration has scheduled meetings with energy executives to advance this comprehensive rebuilding effort as part of the selective sanctions rollback strategy.

The expanded US control over Venezuelan oil sales, combined with tanker seizures and the substantial financial framework, represents a significant evolution in US-Venezuela energy relations beyond the initial selective sanctions relief.