This oil deal with Venezuela is absolutely insane. President Trump just announced that the US has reached a deal to secure "majority control" of over 65 billion barrels of Venezuelan oil reserves. Furthermore, the US currently has ~46 billion barrels of proven crude oil reserves. Combined with the 65 billion barrels covered by this agreement, the US would have domestic reserves plus control over ~111 billion barrels of oil. To put this into perspective, the entire world has roughly 1.57 TRILLION barrels of proven crude oil reserves. In other words, the US is set to control ~7.1% of all proven oil reserves in the world under this new agreement with Venezuela. At ~111 billion barrels, the US would be almost exactly in-line with the United Arab Emirates, which has 113 billion barrels of proven crude reserves, and it would exceed Kuwait's 102 billion barrels. Assuming the agreement is structured as outlined in President Trump’s announcement, the implications for global energy markets will be enormous. We will publish more in-depth analysis soon.(The Kobeissi Letter)