Camila Domonoske

Yeah.

I mean, right now, globally, the oil market is oversupplied with oil.

There's actually more oil than the world needs.

At the same time, the specific kind of oil that comes out of Venezuela, which is very heavy, it's really thick, sticky oil, it's hard to work with, but it's actually perfectly suited for the United States because we have a bunch of refineries that have invested a lot decades ago in being able to handle exactly that kind of oil.

And they would welcome a modest increase in how much heavy crude they're getting from Venezuela.

So generally speaking, adding more oil to the market, especially at a time when there's more oil out there, does tend to push prices down.

I will note that oil markets have not gone crazy.

crazy one way or the other since this has been happening.

It's generally seen, again, this is a redirection of oil that the market had already budgeted in as maybe going to China rather than being some sort of huge shift in global balances for now.

The president has talked very clearly about this being the U.S.

controlling the oil, the U.S.

selling the oil.

PDVSA, the national oil company in Venezuela, has put out a statement saying that they are negotiating with the U.S.

to sell oil to the U.S., framing it as much more of a traditional business transaction with PDVSA.

similar terms of how they interact with Chevron now.

There's just a lot of uncertainty about what exactly is going to happen.

The oil companies aren't commenting publicly.

They're not returning my calls.

A lot of this in terms of what the actual contracts are going to look like, we're still waiting to see.

So what he's talking about here is much more of a long-term vision than we've been talking about these 30 to 50 million barrels of existing oil, right?