Oil Supply Flows

The United States and Venezuela have reached an agreement allowing up to $2 billion worth of Venezuelan crude oil to be exported to U.S. ports, President Donald Trump said Tuesday, marking a major shift in Washington’s sanctions strategy and potentially redirecting oil supplies away from China.

The deal would release millions of barrels of Venezuelan crude currently stranded on tankers and in storage, easing pressure on Venezuela’s oil sector while increasing heavy crude supplies for U.S. refiners along the Gulf Coast.

The agreement comes after weeks of intensified U.S. pressure on Caracas, including a mid-December blockade on Venezuelan oil exports. …