Venezuela Envoy Meets US Officials as Machado Visit Continues

The Trump administration is strengthening diplomatic relations with Venezuela as a senior envoy from the interim government in Caracas meets with US officials in Washington. Ambassador Felix Plasencia, a former foreign minister and close ally of acting President Delcy Rodriguez, is expected to discuss the resumption of embassy operations and broader cooperation. His visit occurs alongside a high-profile meeting between opposition leader María Corina Machado and President Trump during their closed-door meeting.

The meeting with Machado, who won the Nobel Peace Prize for her efforts to restore democracy, marks a rare public engagement by the Trump administration with Venezuela’s opposition. Machado reportedly presented her medal to Trump during their closed-door meeting. However, the White House has not indicated any shift in its current support for Rodriguez, whom it describes as "very cooperative".

Separately, the Trump administration announced plans to invest at least $100 billion in Venezuela’s energy sector, with major oil firms including Exxon Mobil, Chevron, and ConocoPhillips expected to play key roles in the country's transition.

Why Did This Happen?

The Trump administration’s strategic engagement with Venezuela began after the January 3 capture of Nicolás Maduro in a special forces operation. Trump stated that the move was necessary to restore political stability and prevent the country’s oil sector from being controlled by foreign adversaries.

With Maduro now held in New York on drug-trafficking charges, the US has assumed control of Venezuela's oil sales and redirected the proceeds into sovereign wealth funds aimed at supporting public services and infrastructure. Energy Secretary Chris Wright noted that the US is already securing 30% higher prices for Venezuelan crude compared to the period before Maduro's arrest.

How Did Markets React?

The Trump administration’s first oil sale from Venezuela fetched $500 million, with the Nave Photon tanker arriving at Port Freeport, Texas, for processing and sale. The US has seized multiple Venezuela-linked tankers, including the Veronica, under sanctions targeting the oil industry.

Venezuela’s interim government has responded by proposing legal reforms to attract foreign investment into the country’s oil sector. Acting President Delcy Rodriguez emphasized the need to open the industry to new investors, especially in underdeveloped fields, to boost production and modernize infrastructure.

What Are Analysts Watching Next?

Analysts are closely monitoring how U.S. oil majors will respond to the Trump administration’s aggressive plans for Venezuela. Exxon Mobil CEO Darren Woods has expressed concerns that the country is “currently uninvestable” without legal reforms.

Russia has also entered the debate, with Roszarubezhneft reaffirming that its oil assets in Venezuela are the property of the Russian state and will remain operational despite U.S. actions.

The broader implications of U.S. control over Venezuela’s vast oil reserves extend beyond bilateral relations. OPEC, which relies on Venezuela’s 303 billion barrels of proven oil reserves, faces a potential decline in influence as U.S.-led production from the Americas increases.

The Trump administration has not ruled out further oil sales, with Energy Secretary Wright indicating that the program will continue "indefinitely." Meanwhile, Venezuela’s interim government continues to navigate the political and economic challenges of maintaining stability while seeking to align with U.S. interests.

The coming weeks will test whether the U.S. strategy can balance short-term political control with long-term economic development in a country that has long struggled with mismanagement and external pressures.