US to temporarily lift sanctions on Venezuelan oil – Officials

The US government will provide “limited sanctions relief,” in the Venezuelan oil and gas sector, after the country’s government and opposition decided to hold presidential elections in the second half of 2024, the US Department of State said.

PHOTO: An oil pipeline in front of oil barrels with the flag of Venezuela. Getty Images

The announcement came after the Venezuelan President Nicolás Maduro signed a partial roadmap to host elections in the country, official spokespersons from the US Department of State and the US National Security Council jointly said.

The US government believes that this roadmap is, “the most viable path for the people of Venezuela to secure a durable agreement that leads to competitive elections, the restoration of democratic order, and the end to the humanitarian crisis in Venezuela,” the US Department of State official said.

The US government has issued a six-month general license to produce, sell, and export Venezuelan crude and gas to selected markets without limitations, Reuters reported. Venezuela’s state-run oil company PDVSA has been restricted from exporting crude due to US sanctions since 2019.

However, barring these limited easing of sanctions in the oil and gas sector, other sanctions and restrictions imposed by the US government on Venezuela remain in place, the officials said.

“We have still in place a very robust sanctions program in Venezuela,” said the spokesperson from the US National Security Council. “The actions today will not impact the Iran-related sanctions or sanctions that we have in other areas as they impact or have implications for the Venezuelan oil and gas sector,” he further added.

According to oil analysts, the US government has been pushing towards increasing global crude oil supply which has been under severe pressure due to top oil producers’ bid to bring a “balance” in the global oil market.

However, this move "is not going to mean any extra oil in the near term. Venezuela’s oil production is running about 2.3 million b/d. Their exports are at 700,000 b/d and already the Biden administration has been turning a blind eye to sanctions on their oil because let’s face it, the world needs heavy oil," said Price Futures Group’s senior market analyst Phil Flynn.

By Aparupa Mazumder 

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