Oil / Commodities - The Biden administration plans to ease sanctions on Venezuelan oil in a bid to bring more of the country’s crude to Europe. The U.S. will allow European companies still operating in Venezuela to divert more oil to the continent immediately, while Chevron will be allowed to negotiate a resumption of operations in the country. The U.S.-backed Venezuelan opposition supports the move. The easing penalties come as tightening global oil supplies send the cost of crude and fuels skyward, threatening to worsen already historic inflation. More barrels from Venezuela would help alleviate the supply crunch, while also aiding Europe in weaning itself from Russian energy amid the superpower’s invasion of Ukraine. U.S. benchmark crude fell on the news. Italy’s Eni SpA and Spain’s Repsol SA are the only major European oil producers with operations in the country. They are working with the Biden administration to divert Venezuelan oil bound for China to Europe. The easing of penalties comes after officials from President Biden’s administration visited Caracas, ultimately securing the release of Americans who had been detained in the country.
Newsletter - May 18, 2022
Newsletter - May 18, 2022
Newsletter - May 18, 2022
Oil / Commodities - The Biden administration plans to ease sanctions on Venezuelan oil in a bid to bring more of the country’s crude to Europe. The U.S. will allow European companies still operating in Venezuela to divert more oil to the continent immediately, while Chevron will be allowed to negotiate a resumption of operations in the country. The U.S.-backed Venezuelan opposition supports the move. The easing penalties come as tightening global oil supplies send the cost of crude and fuels skyward, threatening to worsen already historic inflation. More barrels from Venezuela would help alleviate the supply crunch, while also aiding Europe in weaning itself from Russian energy amid the superpower’s invasion of Ukraine. U.S. benchmark crude fell on the news. Italy’s Eni SpA and Spain’s Repsol SA are the only major European oil producers with operations in the country. They are working with the Biden administration to divert Venezuelan oil bound for China to Europe. The easing of penalties comes after officials from President Biden’s administration visited Caracas, ultimately securing the release of Americans who had been detained in the country.