Trump calls Venezuelan oil deal biggest in history as Brent rises

President Donald Trump said the United States secured majority control of more than 65 billion barrels of Venezuelan oil reserves. Trump announced the deal on August 28. Trump called it the biggest oil deal in history. The agreement gives a private venture a 100-year lease on 17 Venezuelan oil fields. A US official told Newsweek that the United States holds a 55% stake in the venture. Interim President Delcy Rodriguez said the fields have proven potential of 65 billion barrels. Rodriguez said the venture could draw more than $100 billion in investment. None of the oil is flowing yet. Venezuela produced more than 3 million barrels a day in the late 1990s. OPEC data puts current output close to 1 million barrels a day. Rystad Energy projects that production could rise only 17% by 2028. That growth depends on heavy investment in decayed infrastructure. Patrick De Haan of GasBuddy said the oil would still require billions of dollars in investment. Brent crude climbed from about $88 to $90.48 by Monday. Brent had fallen from above $93 a barrel in late August. That decline tracked easing fears around the Strait of Hormuz. Goldman Sachs estimated Gulf oil exports at 15 million to 16 million barrels a day. That level represents roughly two-thirds of pre-conflict volume. Iran and Oman struck a revenue-sharing deal over the waterway. Tehran said the deal does not guarantee a reopening. Sunday's rebound appears tied to the Middle East risk story rather than Venezuela. Traders appear to view the distant Venezuelan barrels as background to a current supply threat elsewhere. Brent's next direction depends on whether the Middle East risk premium keeps fading. It also depends on whether Venezuela's oil venture attracts the investment Rodriguez expects.