Venezuelan oil sanctions to return in April

Venezuelan oil sanctions to return in April

Courtesy: 247 Splash

WASHINGTON DC: The US has announced the expiration of Venezuela’s oil sanctions exemption in April.

Last October, Washington issued a six-month general licence for transactions involving Venezuela’s oil and gas sector following an electoral roadmap agreement signed by Venezuelan president Nicolas Maduro and opposition politicians in Barbados. Since then, Maduro has not stuck to his promises for a free election.

Since the exemption was granted, the US has been importing 26% of Venezuelan crude, totalling 142,000 barrels per day, according to Vortexa. China remains the top destination for Venezuelan barrels, averaging 293,000 barrels per day in 2023.

“Oil exports have picked up in Venezuela over the last two years as the US has eased sanctions since the start of 2023,” analysts at Braemar noted.

“These developments show the potential fragility of oil sanctions relief deals as well as ongoing US commitment to upholding the other end of the deal in such a case,” tanker experts at rival broker Gibson suggested.