Trump's oil price target: $50

Local time on January 7, according to media citing informed sources, Trump and his advisers are planning to dominate Venezuela's oil industry in the coming years. The president told aides, **he believes his efforts could help bring oil prices down to his desired level of $50 per barrel**. Sources also revealed that the plan envisions the United States exerting a certain degree of control over Venezuela's state-owned oil company (PdVSA), including acquiring and selling the majority of the company's oil output. **If the plan succeeds, it would effectively give the United States control over management of most of the oil reserves in the Western Hemisphere, and could potentially lower energy prices for American consumers.** According to CCTV News, on January 6 local time, U.S. President Trump announced that the Venezuelan interim government would transfer 30 to 50 million barrels of oil to the United States. This oil will be sold at market price, and the proceeds will be overseen by Trump to ensure the funds are used "for the benefit of the people of Venezuela and the United States.” Currently, the price of WTI crude oil is at a low point of around $56 per barrel, hovering near the break-even point of about $50 for many oil companies. If low oil prices persist, it could seriously impact the U.S. shale oil industry. White House Confirms Launch of Global Sales of Venezuelan Oil The U.S. government is rapidly advancing its plan to control Venezuela's oil resources, and the White House has now confirmed the launch of global sales of Venezuelan oil. On January 4 Beijing time, according to Xinhua News Agency, the White House has asked major U.S. oil companies to invest heavily in Venezuela and to repair the country's crude oil extraction infrastructure. According to media citing insiders, **U.S. officials have considered selling Venezuelan oil to multiple distributors and international energy companies, including Mercuria, Vitol, and Trafigura.** According to WallstreetCN, on Wednesday, January 7 Eastern Time, White House press secretary Levitt stated at a briefing that the U.S. has begun marketing Venezuelan oil worldwide, with the proceeds to be deposited into bank accounts controlled by the United States, and the U.S. government will decide how to allocate them. At a meeting the same day, Energy Secretary Wright emphasized that the U.S. will indefinitely control the sale of Venezuelan export oil: "We just want to control the flow of funds." Levitt stated that the batch of oil will "soon" begin to arrive in the U.S., but refused to reveal the duration for which the United States would control Venezuelan oil. She said: > **"Secretary Rubio and the entire team are seriously formulating a long-term plan. Rest assured there is a long-term plan. This is the first step of action you will see."** Trump’s plan to dominate Venezuelan oil is facing the harsh reality of the country's crumbling industrial base. Due to years of insufficient investment and chaotic management, Venezuela’s oil industry has declined. To substantially increase output, American oil companies would need to invest tens of billions of dollars. However, given the sustained low oil prices, these companies may be seriously lacking in investment desire due to considerations over capital returns. On January 7 Beijing time, according to Xinhua News Agency, U.S. President Trump hinted on the 6th that **the U.S. government may use taxpayer money to compensate American energy firms for the costs required to renovate Venezuela’s oil infrastructure.** Trump Administration Actively Negotiates with Oil Companies Venezuela’s state-owned oil company PDVSA stated in a statement that it is negotiating with the U.S. government over crude oil sales, and the framework for negotiations will be similar to its arrangement with Chevron. As the U.S. continues to increase economic sanctions against Venezuela, **Chevron is currently the only major American oil company still operating projects in Venezuelan oil fields.** According to CCTV News, at the end of the 20th century, Venezuela’s oil industry reopened to foreign investment, with American oil companies like Chevron, ExxonMobil, and ConocoPhillips entering the market. Chávez was elected president in Venezuela in 1999 and in 2007 required foreign companies developing Venezuelan oil field projects to partner with Venezuelan oil companies, with the projects remaining under Venezuelan control. ExxonMobil and ConocoPhillips refused and subsequently withdrew from the Venezuelan market. Chevron and some other foreign oil companies accepted the policy and continued doing business in Venezuela. Trump is scheduled to meet with oil executives from Chevron and ExxonMobil at the White House on Friday. According to media citing sources, U.S. government officials have also been in contact with oil company executives, urging them to propose ways in which both America and Venezuela could maximize gains from Venezuelan oil. Production Increase Plan Not Met with Industry Response Analysts believe this government action essentially extends the "full-scale production increase" policy slogan outside the U.S. Trump has consistently viewed increasing output and lowering oil prices as keys to stimulating the economy, and has made this a priority for his second term. **With voters continuing to complain about cost-of-living pressures and his polling numbers sliding ahead of the midterm elections, the urgency to advance this agenda has grown substantially.** However, the oil industry’s response to the plan may be lukewarm at best. Despite multiple urges and the rollout of policies easing regulations to encourage drilling, throughout 2025, new supply from OPEC+ as well as fears of tariffs slowing the economy have jointly suppressed oil prices. Oil and gas producers, long used to Wall Street capital discipline, have thus maintained spending restraint. Data show that between December 2024 and November 2025, U.S. oil production increased only slightly by just over 3%. Analysts believe this growth mainly comes from the natural efficiency improvements in oilfields, not policy stimulus. Clay Seigle, senior fellow at the Center for Strategic and International Studies, commented: Investors aren’t concerned about energy dominance; they care about energy stock dividends. Risk Warning and Disclaimer Clause The market contains risks, and investment needs to be approached cautiously. This article does not constitute personal investment advice and has not taken into account the special investment objectives, financial status, or needs of individual users. Users should consider whether any opinions, viewpoints, or conclusions in this article suit their specific circumstances. If you invest based on this, responsibility lies with yourself.