Trump terminates US oil deal with Venezuela

US President Donald Trump announced the termination of the oil agreement with Venezuela, which was concluded under his predecessor Joe Biden. He stated this on his platform Truth Social, emphasising that it will lose effect from 1 March.

Breach of terms and migration issues
Trump explained his decision by stating that Venezuela had failed to fulfil its oil extraction obligations. However, the cause was not solely economic — the White House chief noted that Caracas also does not facilitate the return of illegal migrants sent to the US.

Consequences for Chevron and Venezuela
According to Bloomberg, the agreement allowed Chevron Corp. to operate in Venezuela despite sanctions against the government of Nicolás Maduro. Under the terms of the licence, the company was required to cease its operations in the country by the end of July. Now, following Trump's decision, this process will be accelerated.

Blow to Venezuela's economy
Analysts note that Chevron's exit will be a serious blow to Venezuela's oil sector, which recently increased oil production to more than 1 million barrels per day.