Negotiations between Venezuela and the United States regarding oil exports to the United States
Five governme, industry and shipping sources told Reuters that Venezuelan and U.S. officials are in talks about exporting Venezuelan crude to U.S. refineries.
According to RCO News Agency, Venezuela currely has millions of barrels of oil in tankers and storage tanks, which it has not been able to export due to the export embargo imposed by US Preside Donald Trump since mid-December. This blockade was a part of increasing American pressure on the governme of Venezuelan Preside Nicolás Maduro, which eveually led to his arrest by American forces.
The agreeme to sell these accumulated oils to American refineries will change the route of their exports from China to the United States; A coury that has been the biggest buyer of oil in the past decade, especially after the imposition of US sanctions against companies involved in Venezuela’s oil trade in 2020.
Venezuela’s state oil company has been forced to reduce production due to these sanctions and lack of storage space. One of the sources said that if the company does not find a way to export oil soon, it will be forced to cut production further.
The White House, Venezuelan governme officials and Venezuela’s state-owned oil company did not immediately respond to requests for comme.
US Gulf Coast refineries are capable of processing Venezuela’s heavy oil, and before Washington first imposed energy sanctions against Venezuela, they were importing about 500,000 barrels per day from this coury.
However, it is still unclear how Venezuela’s state oil company, which is under sanctions, will receive the proceeds from the sale of this oil.
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