REPYF - Return Of US Sanctions On Venezuela's Oil Sector Could Trigger Revenue Loss Fuel Shortages Analysts Warn | Benzinga
The potential re-imposition of U.S. sanctions on Venezuela’s oil and gas sectors could significantly impact the country’s oil revenue, energy investments, and domestic fuel supply, according to industry experts.
What Happened: The U.S. has ordered a cessation of all business transactions between U.S. entities and Venezuela’s state miner Minerven. The U.S. has also indicated that it will reverse its relaxation of energy sanctions in April if President Nicolas Maduro‘s administration fails to adhere to the terms of a previously signed agreement for a fair presidential election, reported Reuters.
The U.S. has been increasing pressure on Venezuela since the country’s top court upheld a ban on the leading opposition candidate, Maria Corina Machado, from participating in the election. The U.S. initially imposed oil sanctions on Venezuela in 2019 but granted sanctions relief in October 2023, following the election deal.
Analysts and executives fear that the reimposition of sanctions could lead to a reduction in Venezuela’s oil revenue, making it harder for the country to meet its energy needs. The move could also discourage new energy investments and increase the ...