Oil sales from Venezuela to continue indefinitely and U.S. sanctions will be reduced, sources say

President Donald Trump said Tuesday that Venezuela will turn over 30 million to 50 million barrels of sanctioned oil, which will be sold at market prices.

But those 50 million barrels are only the first tranche and sales will continue indefinitely, the sources said. U.S. sanctions will be rolled back as part of the agreement, the sources said. The sanctioned oil would have gone to China but will be re-reouted to the U.S.

Venezuela has the largest proven crude oil reserves in the world but is only producing about 800,000 barrels per day, according to data from energy consulting firm Kpler. A majority of Venezuela’s oil exports go to China.

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