Trump predicts sharp drop in oil prices following Venezuela deal

US President Donald Trump has claimed that the United States has become “more powerful” than OPEC in oil production following a deal with Venezuela and predicted that oil prices will fall after the November midterm elections.

Trump made the remarks in Dallas, where the Republican Party’s national convention is being held ahead of the November midterm elections for the US Congress, Caliber.Az reports.

“But with Venezuela, Texas, Oklahoma, North Dakota, Pennsylvania [...]. And all of our other incredible states. We're more powerful now than OPEC. And prices right after this very important election on November 3rd will be plummeting,” Trump said.

The president also claimed that Venezuelan oil reserves under US control could last for 500 years.

“65 billion barrels are ours. And you know what they say it is lifetime? 500 years,” he said, describing the deal with Venezuela as possibly “the biggest deal in the history of the United States.”

The agreement Trump referred to was reached between Washington and Caracas in late August. Under the deal, private company North American Blue Energy Partners (NABEP) is to receive a 100-year lease for 17 oil fields.

The arrangement would give the United States control over 65 billion barrels of Venezuelan oil resources and double its own reserves. Major US oil companies, however, have reacted to the initiative with scepticism.

By Jeyhun Aghazada