The United States will allow the supply of Venezuelan oil to Europe, Reuters reports citing sources.

Eni SpA and Repsol SA, owned by Italy and Spain respectively, could ship Venezuelan oil to Europe as early as next month after the Joe Biden administration approved the plan last month. People familiar with the matter told Reuters that the oil has to go to Europe, it can't be resold elsewhere.

The volume of oil that Eni and Repsol will receive is expected to be quite small, which will have a minimal impact on oil prices worldwide.

The Biden administration's permission to use Venezuelan oil is reportedly part of a drive to rely less on Russian oil and redirect Venezuelan supplies out of China, Reuters added.