As the U.S.-Iran war entered its sixth month and the average U.S. gas price broke $4, #特朗普称美达成委内瑞拉石油协议 secured majority control—through cooperation with private enterprises—over 17 oil fields in Venezuela, representing more than 65 billion barrels of proven reserves. In A-Jian’s view, this “largest oil deal in world history” may well be the deciding move for Trump to ease domestic inflation pressure.
65 billion barrels is one-fifth of Venezuela’s reserves. If this deal can be carried out, global oil pricing power will fully return to Washington—this is essentially the openly stated bargain of using resources to buy the next election’s votes. However, based on what I observed when passing through Venezuela, the infrastructure is no better than in Africa. From reaching the agreement to actually producing oil may still take several years, so in the short term it will have limited effect in materially suppressing oil prices.
Ordinary traders only need to understand that oil is not only energy, but also a political asset in an election year. Especially amid the current global energy turmoil, whoever controls proven reserves also has the final say on inflation. You may consider paying attention to energy stocks with deep involvement in Venezuela’s business, such as Chevron $CVX.US .
65 billion barrels is one-fifth of Venezuela’s reserves. If this deal can be carried out, global oil pricing power will fully return to Washington—this is essentially the openly stated bargain of using resources to buy the next election’s votes. However, based on what I observed when passing through Venezuela, the infrastructure is no better than in Africa. From reaching the agreement to actually producing oil may still take several years, so in the short term it will have limited effect in materially suppressing oil prices.
Ordinary traders only need to understand that oil is not only energy, but also a political asset in an election year. Especially amid the current global energy turmoil, whoever controls proven reserves also has the final say on inflation. You may consider paying attention to energy stocks with deep involvement in Venezuela’s business, such as Chevron $CVX.US .