25 years and $209 billion: the Venezuela-U.S. oil agreement.
WHAT HAPPENED
Venezuela and the United States signed a 25-year oil agreement to develop 17 fields and exceed 1.5 million barrels per day. At a price of $65 per barrel, Venezuela could receive up to $209.335 billion.
WHY IT MATTERS
More Venezuelan oil entering the global market could pressure crude prices over time, although it also depends on demand and other producers. Energy, gasoline, transportation, and oil companies would be the first sectors to feel it.
AND FOR YOUR PORTFOLIO
For a long-term portfolio, the effect is twofold: Chevron, Shell, BP, Eni, and Repsol could increase their production if their projects advance, but cheaper oil may reduce what they earn per barrel. Gasoline could also gradually benefit.
💬 TELL IT LIKE THIS
“Venezuela seeks to extract more oil over 25 years: this could boost its partners but also lower crude prices if enough supply reaches the market.”