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Trump’s Venezuela Oil Drive Stalls on Legal Risks as Traders Lead Early Exports

Legal shields channel initial sales through global traders while major producers hold back over debt exposure and uncertain rules.

Overview

  • President Trump said he is inclined to keep ExxonMobil out of projects after CEO Darren Woods called Venezuela not investable under current frameworks.
  • Trump signed an executive order to protect Venezuelan oil revenues held in U.S. Treasury–controlled accounts from creditor seizures.
  • Vitol and Trafigura obtained preliminary licenses to move cargoes, and the U.S. and Venezuela are finalizing a roughly $2 billion sale of up to 50 million barrels.
  • Venezuela’s more than $150 billion in external debt and expropriation claims of about $12–14 billion by companies including ConocoPhillips and ExxonMobil raise attachment risks for new revenues.
  • Operational and compliance hurdles persist, and near‑term output gains look limited as Chevron and Repsol outline modest multi‑year increases and key service providers remain constrained.