What to know about new U.S. oil deal with Venezuela

President Trump announced on Friday that a U.S. deal with Venezuela to develop 17 strategic oil fields could substantially lower gas prices for Americans in the future. However, energy experts cautioned that the agreement is unlikely to have an immediate impact on prices, which remain above $4 a gallon nationwide. The deal involves Venezuela's 65 billion barrels of proven oil reserves, but extracting that oil could take 15 years, even under optimistic projections.

Venezuela's heavy crude is more difficult to refine than the light crude typically used by U.S. refineries. The White House hopes the deal will boost domestic oil production, but analysts from UBS warned that legal and operational hurdles could delay any production gains. Former U.S. energy officials noted that major oil companies are hesitant to re-enter Venezuela due to its complex legal and political landscape.

While the U.S.-Venezuela deal may have long-term benefits, it is not expected to significantly impact gas prices in the near term, with the Iran war currently having a more immediate impact on fuel costs.