United States President Donald Trump says Venezuela will purchase only American made products with the proceeds from their exclusive oil deal.
“These purchases will include, among other things, American Agricultural Products, and American Made Medicines, Medical Devices, and Equipment to improve Venezuela’s Electric Grid and Energy Facilities,” Trump said in a Truth Social post late Wednesday.
An exclusive deal selling heavy crude oil to the US was among the conditions imposed by Trump on the interim Venezuelan government in the wake of President Nicolas Maduro’s capture.
Trump also asked the Latin American nation to sever economic ties with China, Cuba, Russia, and Iran.
In his Truth Social post, Trump said Venezuela has committed to doing business with the US as a principal partner.
“A wise choice, and a very good thing for the people of Venezuela, and the United States,” he said of the decision.
While Venezuela sits on the largest heavy-oil deposits in the world, the US remains the top oil producer.
However, most of US output is light crude. Given that a handful of American refineries are built to process heavy crude into gasoline (petrol), diesel and other products critical for the US economy, Venezuelan oil fills that niche.
Other countries where the US imports heavy crude include Canada and Mexico.
Marco Rubio, secretary of state, reportedly told lawmakers during a private briefing on Monday that he believes the US can force Venezuela’s hand because its existing oil tankers are full.
Rubio also told lawmakers that the US estimates that Caracas has only a couple of weeks before becoming insolvent.
The US used to be the main buyer of Venezuelan oil before relations between both nations turned frosty, with sanctions which blocked access to global markets, shipping, and diluents needed for heavy crude.
