US-Venezuela oil deal angers China, pushes prices down
Global oil prices have fallen and China has accused the United States of being a bully after President Donald Trump said his administration had persuaded Venezuela to divert supplies away from Beijing and import up to US$2 billion of embargoed crude oil.
The deal was in line with Trump’s goal of controlling the South American OPEC member’s vast oil reserves after deposing leader Nicolas Maduro, whom he has long portrayed as a drug-trafficking dictator in league with Washington’s enemies.
Maduro’s Socialist Party allies are still in power in Venezuela, where they walk a fine line between condemning the “kidnapping” of interim President Delcy Rodriguez and initiating cooperation with the United States under clear threats from Trump.
He said the United States would refine and sell up to 50 million barrels of crude oil trapped in Venezuela under a U.S. blockade, the first step in a plan to revive a sector that has long been in decline despite having the world’s largest reserves.
“This Oil will be sold at the Market Price and this money will be controlled by me as President of the United States to ensure that it is used for the benefit of Venezuela and the people of the United States!” Trump made a statement on Tuesday.
Crude oil prices fell nearly 1.0 percent in world markets on Wednesday due to an expected supply increase.
The deal may require rerouting cargoes initially destined for Venezuela’s biggest buyer, China, as Caracas tries to offload millions of barrels stuck on tankers and warehouses.
“The US’s brazen use of force against Venezuela and its demand for ‘America First’ when Venezuela divests its own oil resources are typical acts of bullying,” Chinese foreign ministry spokesman Mao Ning told reporters.
“These actions seriously violate international law, seriously violate Venezuela’s sovereignty, and seriously harm the rights of the Venezuelan people.”
China, Russia and Venezuela’s leftist allies condemned the US offensive to capture Maduro; This was Washington’s biggest intervention in Latin America since it invaded Panama in 1989 to oust Manuel Noriega.
Washington’s allies are also deeply disturbed by such an extraordinary example as the capture of a foreign head of state; Trump is threatening more action to advance U.S. interests, from Mexico to Greenland.
Some details remain sketchy about how US Special Forces attacked Caracas by helicopter in the dark on Saturday, smashed Maduro’s security cordon and captured him at the door of a secure room, and how no casualties were reported in the US.
Venezuela did not confirm its total casualties, but the military said 23 soldiers died, while ally Cuba said 32 military and intelligence members died.
The US estimates about 75 deaths.
Maduro, 63, who has ruled Venezuela since the death of his predecessor Hugo Chavez in 2013, pleaded not guilty to narcotics charges against him in a Manhattan court on Monday.
Trump appears to be calculating that, for now, it would be better to work with Maduro’s senior allies to stabilize Venezuela.
He emphasizes that the priority for the democratic transition is not a new vote, but the revitalization of the oil sector with the help of US companies.
Maria Corina Machado, Venezuela’s main anti-Maduro figure who left in disguise to receive the Nobel Peace Prize in October, wants to return home where the opposition says she will easily win free votes.
But he is also careful not to anger Trump by telling him that he wants to personally give Trump the Nobel Prize he so desires.
Machado’s ally Edmundo Gonzalez, who is banned from running in the 2024 elections, won overwhelmingly, according to the opposition, the United States and election observers.
