Trump plans long-term control of Venezuela’s oil, aims to cut prices to $50: Report

The plan under consideration would involve the US exerting a form of control over Venezuela’s PDVSA

US President Donald Trump and his advisers are planning a sweeping initiative to take control of Venezuela’s oil sector for years, and he has told aides he believes the effort could help push oil prices down to his preferred level of $50 a barrel, the Wall Street Journal reported, citing people familiar with the matter.

The plan under consideration would involve the United States exerting a form of control over Venezuela’s state-owned oil company, PDVSA, including taking over the bulk of its production and marketing.

If successful, the plan would effectively allow the United States to manage most of the Western Hemisphere’s oil reserves, when combined with reserves in the United States and in other countries where US companies control production.

The initiative would also serve two key objectives for the US administration: sidelining Russia and China in Venezuela and lowering energy prices for American consumers.

According to the newspaper, two senior administration officials said Trump has repeatedly raised the prospect of cutting oil prices to $50 a barrel, a level he favors.

White House spokeswoman Karoline Leavitt said the US energy industry—and, more importantly, the people of Venezuela and the United States—would benefit significantly from the president taking control of Venezuela’s oil, which she said had previously been used to finance the “illegitimate” Maduro regime through drug trafficking and terrorism.