The Trump administration has set stiff conditions for Venezuela’s government under interim president Delcy Rodríguez to expand oil production, demanding the country sever economic links with China, Russia, Iran and Cuba before Washington will allow increased crude exports. The move comes amid an intense geopolitical struggle for control of Venezuela’s vast hydrocarbon reserves and follows a dramatic escalation of U. S. military and economic actions in the country. U. S. officials have told Venezuela’s leadership that reopening or expanding oil output hinges on these political realignments and an exclusive partnership with the United States in production and sales of its heavy crude. The demands, outlined by sources familiar with discussions in Washington, underline a strategic push to reduce Caracas’s reliance on longstanding energy ties with Beijing and Moscow, as well as with Havana and Tehran.
Senior U. S. lawmakers, including Secretary of State Marco Rubio, have characterised Venezuela’s current oil storage situation as strained, saying that existing tankers are full and that Caracas faces narrowing financial options without resumed exports. Rubio reportedly conveyed this assessment to lawmakers during a private briefing, signalling Washington’s belief that economic leverage can pressure policy shifts in Caracas. Senate Armed Services Committee Chairman Roger Wicker also indicated that the U. S. government intends to control oil shipments and prevent tankers from heading to destinations such as Cuba, emphasising a preference for sales on open markets.
President Trump has taken an assertive public posture on Venezuela’s oil assets, announcing that Caracas will transfer between 30 million and 50 million barrels of sanctioned crude to the United States for sale at market prices. He stated that proceeds from these sales will be exercised under his control to benefit both Venezuelan citizens and Americans. Analysts note that while these volumes are significant politically, they represent a relatively limited flow compared with Venezuela’s historical output.
The backdrop to these developments is a sharp downturn in Venezuela’s oil industry, which once dominated global crude markets but has seen production collapse due to chronic underinvestment, sanctions and deteriorating infrastructure. The country now accounts for a fraction of its former export capacity, a decline that has prompted asset backlogs in storage and contributed to U. S. pressure tactics aimed at reshaping regional energy alignments.
Chevron, the only Western company still authorised to produce and export Venezuelan crude under U. S. sanctions, is poised to play a central role under the new arrangements, although it remains unclear whether other American firms will enter the market. Washington officials have also floated the idea of offering Venezuelan oil to buyers through auctions and potentially allocating some volumes to the U. S. Strategic Petroleum Reserve, though details have yet to be finalised.
Venezuela’s interim leadership under Rodríguez has faced intense pressure from Washington while confronting internal political volatility following the removal of former president Nicolás Maduro. Rodríguez condemned U. S. demands as infringement on sovereignty and has decried the capture of Maduro and subsequent U. S. operations. The U. S. military action, which included the capture of Maduro and other top officials and brought them to face charges in New York, has drawn international criticism and heightened tensions with nations allied to Venezuela.
Beyond the immediate bilateral tensions, the unfolding situation is reverberating across global energy markets, where traders are assessing the potential impact of increased Venezuelan crude availability under U. S. auspices. Benchmark prices for West Texas Intermediate dipped as the prospects of heightened output from Venezuela under American control emerged, even as analysts caution that significant increases in long-term production will require years of investment and institutional reform.
Opposition to Washington’s pressure campaign has been vocal among allied nations of Venezuela, with criticisms portraying U. S. actions as an attempt to assert hegemony in Latin America and control strategic natural resources. Proponents of the U. S. approach argue that reorienting energy links away from China and Russia serves broader geopolitical and security interests, while detractors warn that it risks destabilising regional diplomacy and undermining established international norms.