US aims to push oil prices down to $50 per barrel

US President Donald Trump and his administration are planning to take control of Venezuela’s state-owned oil company, PDVSA, in a bid to ultimately lower oil prices to $50 per barrel, The Wall Street Journal reports, citing sources.

According to the newspaper, the plan under consideration would see the United States oversee most of PDVSA’s oil production and sales. This would effectively give Washington control over a large share of oil production in the Western Hemisphere. Among other measures, the US is discussing the possibility of creating joint ventures between American companies and PDVSA.

The paper notes that the plan could help the US president achieve a key political goal of reducing oil prices to $50 per barrel, which in turn would lower energy costs for American consumers. In addition, the publication reports that Trump and his administration intend to push Russia and China out of Venezuela.

At the same time, if oil prices fall below $50 per barrel, production would cease to be profitable for many oil companies. Such a price level could also cripple shale oil production in the United States.