US sets tough conditions for Venezuela: Cut China, Russia ties to pump more oil

Oil storage crisis and US pressure leave Venezuela with little room to manoeuvre as Trump lays down strict conditions for drilling and exports

PGurus Newsdesk

January 7, 2026

Oil at the centre of power struggle as US tightens grip on Venezuela

The United States has reportedly laid out strict conditions for Venezuela’s interim government under President Delcy Rodríguez, demanding that Caracas sever economic and strategic ties with China, Russia, Iran, and Cuba before being allowed to expand oil production.

According to reports, the Trump administration has conveyed to Venezuela’s new leadership that any increase in oil drilling or exports would be permitted only if the country aligns exclusively with Washington on energy matters. The US is said to be seeking preferential access to Venezuela’s heavy crude oil and wants American companies to become the sole partners in oil production.

US seeks exclusive control over Venezuela’s oil sector

Sources familiar with the matter said the conditions include expelling Chinese, Russian, Iranian, and Cuban interests from Venezuela’s energy and economic landscape. China, in particular, has long been Venezuela’s largest oil buyer and a key strategic partner.

The reported demands come amid deep political turmoil in Venezuela following US military strikes last week that led to the capture of former president Nicolás Maduro, who was subsequently flown to the United States. Delcy Rodríguez has since assumed charge as interim president, even as Donald Trump publicly claimed that Washington now effectively controls developments in the South American nation.

Oil leverage at the centre of Washington’s strategy

US officials reportedly believe Venezuela has limited room to resist pressure, as its oil tankers are currently full and the country faces an acute storage crisis. Reports indicate that Venezuela began shutting oil wells in late December after running out of capacity to store unsold crude amid restrictions on exports.

American assessments suggest Caracas could face financial insolvency within weeks if it is unable to sell its oil, a situation that could weaken the interim government’s hold on power.

Senior US lawmakers have indicated that the strategy hinges on controlling oil logistics rather than deploying troops on the ground. The plan reportedly involves taking charge of oil shipments and preventing tankers from supplying rival nations.

Trump claims oil proceeds will be overseen by US

Donald Trump has also claimed that Venezuela’s interim authorities would transfer between 30 million and 50 million barrels of oil to the United States to be sold at market rates. According to Trump, the proceeds would be managed under US oversight to ensure they are used “for the benefit of the people of Venezuela and the United States”.

The White House has so far not disputed the reports outlining these conditions, even as the developments raise fresh questions about sovereignty, resource control, and the future of Venezuela’s oil-dependent economy.

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