A controversial U.S.–Venezuela oil deal under President Donald Trump has drawn sharp criticism. Senator Chris Murphy said Trump appeared to want to control Venezuela’s vast oil reserves “for his friends.” He called it almost a “coup” that would give the oil industry full access to the world’s largest petroleum reserve.
Multi-Billion-Dollar Oil Deal Under Scrutiny
The Trump administration has sold roughly $500 million worth of Venezuelan oil since the oil deal began. Some of the proceeds were deposited in a Qatari bank account, reportedly controlled at the discretion of the Trump administration. This unusual setup has caught the attention of lawmakers, who are now demanding answers.
On January 21, more than a dozen Democratic senators sent letters to Trump officials. They requested disclosure of any financial interests in companies involved in the Venezuelan oil deal. Another group of senators contacted top banks. They asked if the administration had instructed the banks to hold oil deal proceeds.
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White House spokesperson Taylor Rogers defended the oil deal. She said, “If not for President Trump’s bold action and courageous leadership, Venezuela would still be controlled by narcoterrorist Maduro and Venezuelan oil would still be enriching our foreign adversaries.” Rogers added that the energy agreement was designed to safeguard U.S. economic and national security interests.
Experts, however, remain skeptical. Francisco Rodriguez, a senior research fellow at the Center for Economic and Policy Research, warned that the Venezuelan funds from the oil deal are “outside of the U.S. regulatory framework.” He said it is unclear what legal rules apply to these transactions.
Trump issued an executive order on January 9. The order stated that revenue from oil deal sales should be treated as “funds paid to or held by the U.S. government on behalf of the Government of Venezuela.” Initially, four Venezuelan banks received $300 million from the sales to provide foreign currency to local companies.
Vitol and Trafigura: Controversial Winners of the Oil Deal
The administration awarded the first oil trading licenses for the oil deal to two companies: Vitol and Trafigura. Both are among the world’s largest commodity traders. However, questions have emerged about why only these two firms were selected.
John Addison, a senior trader at Vitol who helped secure the oil deal, donated $6 million to Trump’s reelection campaign. Critics argue that the connection raises concerns about favoritism.
Both companies also have troubling pasts. In 2020, Vitol agreed to pay $135 million in criminal penalties after being implicated in bribery scandals in Ecuador, Brazil, and Mexico. A former Vitol trader pleaded guilty in 2024 to paying $600,000 in bribes to Mexico’s state-run oil company.
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Trafigura faced similar issues, paying over $126 million to resolve U.S. Justice Department charges related to bribing Brazilian oil officials.
Vitol has said it is “not affiliated with any political party” and that Addison’s donation was made in a private capacity. The company also stated that compliance procedures have been strengthened since the 2020 bribery settlement. Trafigura did not respond to requests for comment.
Despite past controversies, a White House official defended the licensing choice, saying the administration wanted the first oil deal sale to happen quickly. Reuters reported on January 27 that future licenses will be open to additional traders.
Venezuela’s Legal Reforms and U.S. Pressure
Donald Trump publicly praised Venezuela’s interim leader, Delcy Rodríguez, for pushing major changes to open the country’s vast oil reserves to foreign companies. At a January 9 White House meeting, Trump urged top oil executives to invest in Venezuelan oil. When the CEO of ExxonMobil expressed hesitation, Trump criticized him for “playing too cute,” suggesting they might stay out of the oil deal.
Rodríguez has introduced a significant overhaul to Venezuela’s oil laws. These changes would allow private companies to run oil projects without needing approval from the government — a shift many energy experts say companies have long wanted.
At the same time, Trump has not strongly backed Venezuelan opposition leader María Corina Machado, even though her party claimed victory in the 2024 elections. Nicolás Maduro refused to step down. The administration has also kept up pressure on Venezuela over other issues, including migrant deportation flights and the release of political prisoners. Roughly 270 prisoners have been freed since early January, though many remain jailed.
Rodríguez has publicly criticized U.S. interference while seeming willing to work on economic reforms and oil access. Her leadership and the oil deal have focused attention on transparency and how funds are managed.