Trump's Venezuela Oil Deal Could Ease Iran War Oil Shock, But Analyst Warns: 'It Still Will Take Billions'

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GasBuddy analyst Patrick De Haan says President Donald Trump's Venezuela oil deal would be beneficial to offset oil shortages due to the Iran war, but warned that the deal could warrant multi-billion-dollar investments to have an impact on gas prices.

Trump's Deal Sounds Promising

On Saturday, De Haan took to the social media platform X following Trump's announcement. "Sounds promising, but it still will take billions of investment to get that oil," De Haan said.

The analyst then said that Venezuela had vast "proven oil reserves" which were different than the U.S.'s Strategic Petroleum Reserve (SPR). "65 billion is what geologists estimate VZ *may* have," he said. De Haan added that things do not change "overnight or even in months."

De Haan then expanded upon his comments, saying that while the idea of lower gas prices was "promising," but "drilling/pumping" the estimated 65 billion barrels of oil will take a "very long time." He added that "changes to fuel prices won't happen overnight or even in months."

The analyst also pointed to "constrained" refining capacity. "Even with additional oil we lack enough global refining capacity to translate the lower oil prices in lower fuel prices," he added. According to data from the U.S. Department of Energy (DOE), the U.S. SPR was at 289.7 million barrels on August 21st.

He then questioned the validity of the claim. "How can the U.S. lay claim to a sovereign country's natural resources?" De Haan asked.

Gas, Oil Prices

Gas prices recorded a slight decline on Sunday, with the national average price at $4.0787/gallon, according to data from the American Automobile Association (AAA). However, the national average has remained above $4, which is still well over the usual price around this time of year.

Notably, Trump's Environmental Protection Agency (EPA) had earlier issued an emergency fuel waiver to allow an early shift to winter blends of gasoline in a bid to decrease fuel costs.

On the oil front, the West Texas Intermediate (WTI) crude grew 2.35% to $85.36 at press time, while the Brent crude was trading at $90.27/bbl.

Iran War Escalates, Elizabeth Warren Slams Trump

The deal comes as the U.S. launched missile strikes as Iran was reportedly preparing to launch rockets carrying sea mines near the Strait of Hormuz. Iran, in response, targeted U.S. bases in Jordan. Earlier, Trump imposed sanctions on Iran, calling it an "Economic D-Day" for Tehran, which was slammed by Iran as systemic "bullying."

Sen. Elizabeth Warren (D-Mass.) slammed Trump, accusing him of profiting off the war with Iran, citing the President's multi-million-dollar holdings in oil companies like ExxonMobil Holdings Corp (XOM), Chevron Corp (CVX) and more, as stocks grew more than 30% in some cases.

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Trump's Venezuela Oil Deal Could Ease Iran War Oil Shock, But Analyst Warns: 'It Still Will Take Billions'

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Trump's Deal Sounds Promising

Gas, Oil Prices

Iran War Escalates, Elizabeth Warren Slams Trump

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