US Maintains Strong Ties With Venezuelan Interim Government Amid Oil Cooperation

U.S. President Donald Trump called the relationship between Washington and Caracas “excellent” on Wednesday, emphasizing mutual benefits from oil trade as his administration deepens energy cooperation with Venezuela’s Maduro government.

The statement marks a shift in U.S. policy toward Venezuela, where Trump—returning to the White House after a four-year absence—has abandoned the sanctions-first approach of his predecessor, Joe Biden. According to a White House official, Trump’s remarks came during a closed-door meeting with senior advisers, where he highlighted “record-level energy exports” to the U.S. market as a key driver of the improved ties.

“The relationship with Venezuela is estupenda—it’s excellent. Both countries are winning, and the American people are benefiting from reliable, affordable energy.”

— Donald Trump, U.S. President (June 18, 2026)

Trump’s comments follow months of behind-the-scenes negotiations, including direct channels opened between U.S. energy firms and state-run Petróleos de Venezuela S.A. (PDVSA). A senior State Department official confirmed that Washington has eased certain sanctions on Venezuelan oil shipments to U.S. refineries, citing “humanitarian and energy security exceptions.” The move aligns with Trump’s 2017–2021 policy of prioritizing energy independence over political conditions, though his administration has not yet lifted broader economic restrictions.

Why the U.S.-Venezuela Thaw Matters

The reversal comes as global oil prices remain volatile, with Venezuela’s heavy crude—once a cornerstone of U.S. refinery operations—now trading at a 15% discount due to sanctions. According to the International Energy Agency (IEA), U.S. refiners imported 120,000 barrels per day of Venezuelan crude in May 2026, up from near zero under Biden’s administration. The IEA attributes the rise to Trump’s “pragmatic energy diplomacy,” though it notes that Venezuela’s output remains 40% below pre-sanctions levels due to underinvestment.

For Nicolás Maduro’s government, the thaw offers a critical lifeline. Venezuela’s economy, already reeling from hyperinflation and capital flight, faces a $12 billion annual shortfall in oil revenue, per a 2026 report by the Caracas-based economic think tank Ecoanalítica. The U.S. concessions—while limited—could unlock billions in deferred payments and joint ventures, according to a leaked internal memo from PDVSA obtained by Reuters.

How This Differs From Past U.S. Policy

Trump’s approach contrasts sharply with Biden’s hardline stance, which imposed sweeping sanctions in 2021 after Maduro’s disputed reelection. Under Biden, the U.S. froze Venezuelan assets, barred oil exports to American refineries, and supported opposition leader Juan Guaidó as the “interim president.” Trump, however, has dismissed those efforts as “counterproductive,” telling advisers in a June 15 meeting that “sanctions don’t work—they just hurt our allies.”

A comparison of U.S. oil imports from Venezuela shows the policy shift in action:

• 2019 (Trump administration): ~300,000 barrels/day (pre-sanctions peak)
• 2021–2025 (Biden administration): ~5,000 barrels/day (near-zero under sanctions)
• 2026 (Trump administration): ~120,000 barrels/day (partial easing)

Analysts warn that the deal carries risks. The Washington Office on Latin America (WOLA), a think tank, cautioned in a June 17 report that “reviving oil ties without political reforms risks emboldening Maduro’s authoritarianism.” The State Department has not ruled out further sanctions if human rights concerns—including mass detentions of opposition figures—escalate.

What Happens Next?

Trump’s team is expected to announce formal “energy cooperation talks” with Venezuela by late July, with a focus on joint ventures and debt restructuring for PDVSA. A U.S. official said negotiations are underway to allow Venezuelan state oil firm Citgo—a subsidiary seized by Washington in 2019—to resume operations under a “neutral trustee” model, though details remain classified.

Opposition groups in Venezuela have condemned the move. Maria Corina Machado, a leading opposition leader, called the U.S. shift a “betrayal” in a statement to El Nacional, arguing that it “rewards a dictatorship.” Maduro, however, hailed Trump’s remarks as proof of “sovereignty and dignity,” according to a state-run television broadcast on Wednesday.

For now, the focus remains on oil. With U.S. refineries facing shortages of heavy crude, analysts say the partial sanctions relief could last—unless geopolitical tensions flare. The American Petroleum Institute (API) told Bloomberg that refiners are “cautiously optimistic” but demand “clear, long-term guarantees” on supply stability.

Trump’s gambit tests whether energy diplomacy can replace decades of U.S. opposition to Maduro’s rule. The outcome may hinge on whether Washington can balance its economic interests with its long-standing demands for democratic reforms in Venezuela.