U.S. President Trump said on Wednesday that he believes it would be better for Venezuela to remain in OPEC, but he added that he is uncertain whether this would be more favorable for the United States.
When asked whether the government supports Venezuela remaining in the oil cartel, Trump said in a Reuters interview: 'Well, I think it would be better for them if they do. I don't know if it's better for us... but they are members of OPEC, and we haven't discussed this with them at all,' Trump added.
Venezuela is a founding member of the oil cartel organization, boasting some of the largest oil reserves in the world, but in recent years its output has collapsed under the impact of economic turmoil and sanctions. Following U.S. actions earlier this month to forcefully control Venezuelan President Nicolás Maduro, Trump has been seeking to exert control over Venezuela's oil supply.
The Trump administration has stated that, in its efforts to rebuild Venezuela's oil industry and pressure the Caracas government, it needs to maintain indefinite control over Venezuela's oil resources.
When asked whether Venezuela would be required to comply with OPEC's production limits under the influence of U.S. oil policy, Trump stated that the question is premature and not within his purview. 'I don’t have to worry about that right now because, you know, I have no relationship with OPEC,' he said.
U.S. control over Venezuela's oil industry and future investments to increase capacity may create tensions between Caracas and other OPEC member countries. OPEC is an organization of oil-producing nations that collectively establish supply policies to stabilize the oil market—cutting production when prices fall and increasing output when demand allows.
Despite collective decision-making among member countries, Saudi Arabia, as the world's largest oil exporter, is widely regarded as the de facto leader of the oil-producing group due to its dominant production capacity and ability to increase or decrease output.
In a recent interview, White House aides and outside advisors told Reuters that the topic of Venezuela's membership in OPEC has yet to become a subject of discussion. They pointed out that if Trump seeks to increase oil production while OPEC tries to implement cuts to support prices, this could become a flashpoint, causing a clash between U.S. objectives and the cartel's strategy.
Some OPEC member countries aiming to expand oil production often find themselves constrained by the cartel's quota system, which sets production limits to stabilize global prices. Countries like Iraq, Nigeria, and Angola have previously expressed frustration that quota restrictions hinder their ability to fully develop reserves or meet domestic fiscal needs.