President Donald Trump said in a social media post that Venezuela’s deal with the U.S. will include agricultural products, medicines, medical devices, and equipment.
- The deal will bolster Venezuela’s electric grid and energy facilities, Trump said on Wednesday in a Truth Social post.
- “Venezuela is committing to doing business with the United States of America as their principal partner,” the president said.
- Trump’s post comes amid rising pressure on the Venezuelan government to engage with the U.S. or risk the chance of further military intervention.
President Donald Trump said that Venezuela will purchase only American-made products from the proceeds of the new oil deal.
These will include agricultural products, medicines, medical devices, and equipment that will bolster Venezuela’s electric grid and energy facilities, Trump said on Wednesday, in a post on Truth Social.
“Venezuela is committing to doing business with the United States of America as their principal partner,” he said. “A wise choice, and a very good thing for the people of Venezuela, and the United States,” he added.
Venezuela Oil Deal
On Tuesday, the U.S. announced a deal with Venezuelan capital Caracas to export up to $2 billion worth of crude oil to the United States, indicating that Venezuela’s government officials are responding to Trump's threats to engage with U.S. oil companies or risk the chance of further military intervention.
U.S. Energy Secretary Chris Wright said on Wednesday at the Goldman Sachs Energy, CleanTech & Utilities Conference in Miami that the U.S. must control Venezuela's oil sales and revenue to stabilize its economy.
As per Wright, the U.S. would first market Venezuela’s stored oil reserves before selling ongoing future production, including to U.S. refineries. The revenues would then be used to stabilize the country’s economy and then repay oil majors like Exxon Mobil (XOM) and ConocoPhillips (COP) for their losses.
How Did Markets React?
U.S. equities traded down on Wednesday, pulling back from record levels.
At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down by 0.05%, the Invesco QQQ Trust ETF (QQQ) declined 0.02%, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) rose marginally by 0.03%.
Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bullish’ territory.
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