US Allows Chevron to Resume Oil Operations in Venezuela
The administration of President Donald Trump has authorized Chevron Corp. to resume oil production in Venezuela, according to a source familiar with the decision.
While full details remain undisclosed, the development follows a prisoner exchange agreement under which 10 American detainees were released from Venezuela, and 250 Venezuelans imprisoned in El Salvador were returned to their country.
A key element of the deal is that Venezuelan President Nicolás Maduro's government will not directly benefit from any revenue or taxes, according to the source, who requested anonymity.
Following the announcement, oil futures pulled back, as traders weighed the potential increase in global supply. Brent crude rose just 0.1% to $68.57 a barrel as of 1:05 p.m. in New York.
The White House did not immediately comment. The decision was first reported by The Wall Street Journal.
'Chevron conducts its global operations in compliance with applicable laws, regulations, and U.S. sanctions frameworks, including those related to Venezuela,' Chevron spokesperson Bill Turenne said in a statement.
The U.S. had previously revoked Chevron's license to operate in Venezuela earlier this year as part of efforts by President Trump to exert pressure on the Maduro regime. That suspension was welcomed by national security officials, including Secretary of State Marco Rubio.
With the new license, the Houston-based oil major is now authorized to resume production at its Venezuelan sites after operations were halted in May. The move could reintroduce critical U.S. dollars into Venezuela's struggling economy.
Chevron's license had become a key bargaining chip in talks between Washington and Caracas. Within the Trump administration, officials were divided: Rubio pushed for a hardline approach, while Special Envoy Ric Grenell and others favored a more transactional relationship.
Supporters of the decision argued that excluding U.S. firms would only strengthen China's influence in Venezuela. With oil prices and U.S. energy dominance being central to Trump's agenda, restoring Chevron's operations carried strategic weight.
Shortly after taking office in late January, Grenell met with Maduro in Caracas, negotiating the resumption of direct deportation flights and the release of six American prisoners.
In May, a seventh U.S. citizen was released, days after a Venezuelan child, whose parents had been deported, was returned to Venezuela from the U.S. Over 8,000 Venezuelans have now been repatriated.
Chevron remains a lifeline in Venezuela's battered oil sector. It was the only major U.S. oil firm still active in the country. While the Biden administration granted a limited license in 2022 for Chevron to resume oil production and exports, it restricted operational expansion.
Chevron's joint ventures with PDVSA, Venezuela's state oil company, produced over 240,000 barrels per day as of May 27, when the previous license expired. That volume represented roughly 25% of national output, helping to lift the country's total production above 1 million barrels per day.
Before sanctions, the U.S. imported around 250,000 barrels per day of Venezuelan crude, primarily for Gulf Coast refineries. Valero Energy, the third-largest U.S. fuel producer, was the largest importer by the end of 2024, followed by Chevron, which processes the oil in its own refineries and sells to others.
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A sustained break above that level would open the path toward retesting $3,400, and a breakout beyond $3,430 could signal a renewed bull leg. On the downside, $3,300 remains key support—marking the lower bound of June's consolidation zone. Signs of easing global trade tensions and resilient U.S. economic data have lifted risk appetite and pressured gold, with some safe-haven flows rotating into equities and higher-yielding assets. At the same time, the potential for short-term U.S. dollar strength adds to the headwinds for gold, particularly in the near term. However, the medium- to long-term backdrop still supports the bull case. A dovish Fed pivot, renewed risks of geopolitical shocks, or a weaker dollar could revive upside momentum. And beneath the surface, structural tailwinds—including persistent fiscal deficits, central bank gold buying, and downward pressure on real yields—continue to provide a solid floor for gold, even as short-term volatility persists.
