& Tobago

Very usefull links


News links




Dow Jones

Oil price



Views and News




US considers Venezuela oil sanctions as administration backs Maduro opposition



By Brian Scheid / Platts

Petroleumworld 01 23 2019

The US continues to consider sanctions on Venezuelan oil exports, potentially complicating a major source of crude for US Gulf Coast refiners, as key Trump administration officials on Tuesday backed the country's opposition and its leadership.

"Discussions [on oil sanctions] are ongoing," one White House source said Tuesday.

A White House principals meeting is being planned for this week to discuss the US' path forward on Venezuela, according to a source. The meeting, likely to involve officials from the White House National Security Council and National Economic Council and cabinet agencies such as the Department of State and Department of Energy, is expected to include discussions on sanctions on US imports of Venezuelan crude, this source said.

Senators Rick Scott and Marco Rubio, both Republicans, plan to meet with President Donald Trump on Tuesday to discuss the crisis in Venezuela and the administration's planned response, according to a Rubio spokesman. Rubio has previously called for oil sector sanctions on Venezuela, but the spokesman said it is unclear if oil sanctions will be discussed during the meeting with Trump.

White House NSC officials earlier this month told some US refiners that sanctions on Venezuelan crude exports were under consideration, sources said. The Trump administration has long resisted such sanctions, partly due to the potential economic impact on domestic refiners.

Sources said such sanctions could be triggered by President Nicolas Maduro's response to opposition protests scheduled to begin Wednesday.

"The list of catalysts is getting longer every day," one analyst said.


In a video message released by the White House Tuesday, US Vice President Mike Pence offered support to the Venezuelan people and opposition leader Juan Guaido.

"The United States joins with all freedom-loving nations in recognizing your National Assembly as the last vestige of democracy in your country, for it is the only body elected by you, the people," Pence said.

In a tweet Tuesday, US Secretary of State Mike Pompeo called the National Assembly "Venezuela's only valid democratically elected body."

In addition to sanctions on Venezuelan crude exports, sources say the administration is considering multiple options on Venezuela, including recognition of an alternative government to Maduro's; declaring Venezuela a state sponsor of terrorism; and sanctions on oil services companies or diluent exports to Venezuela.

US imports of Venezuelan crude averaged about 574,000 b/d in December, down roughly 40% from July 2016, when US refiners imported more than 850,700 b/d, according to US Customs and Border Protection data. US imports of Venezuelan crude fell as low as 409,150 b/d in February 2018, the data show.

Venezuelan oil output fell to 1.17 million b/d in December, according to the latest S&P Global Platts survey. The South American country's output is forecast to decline by 350,000 b/d through 2019, but, depending on sanctions and other risk factors, could fall by as much as 800,000 b/d by late this year, according to a Friday note from Barclays.


US refiners have been pressing the Trump administration to not impose sanctions, arguing, in part, that they will have limited impact, since Venezuela can simply redirect its oil exports, primarily to markets in Asia.

But such a shift in global oil flows will likely be "lumpy" as payments would need to be negotiated and refinery testing would need to take place, according to Michael Cohen, head of energy markets research at Barclays.

In addition, demand for Venezuelan heavy crude may be limited, Cohen said.

If strict sanctions go into place, markets could be found for the roughly 500,000 b/d of Venezuelan crude now sent to the US, according to Francisco Monaldi, a fellow in Latin American Energy Policy at Rice University's Baker Institute for Public Policy.

But that crude will be sold at a discount, partly due to transportation costs, and will likely be sold mostly in India and China where oil exports are used largely to repay loans and do not generate cash for PDVSA, Monaldi said.



We invite you to join us as a sponsor.

Circulated Videos, Articles, Opinions and Reports which carry your name and brand are used to target Entrepreneurs through our site, promoting your organization’s services. The opportunity is to insert in our stories pages short attention-grabbing videos, or to publish your own feature stories.



Story from Platts

spglobal.com 01 22 2019

Hit your target - Advertise with us

PW 300.000 plus request per week

Copyright© 1999-2019 Petroleumworld or respective author or news agency. All rights reserved.

We welcome the use of Petroleumworld™ (PW) stories by anyone provided it mentions Petroleumworld.com as the source.

Other stories you have to get authorization by its authors. Internet web links to http://www.petroleumworld.com are appreciated.

Petroleumworld welcomes your feedback and comments, share your thoughts on this article, your feedback is important to us!

We invite all our readers to share with us
their views and comments about this article.

Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1



Contact: editor@petroleumworld.com,

Editor & Publisher: Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2019, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2019, Petroleumworld   / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.