• 9 minutes WTI @ 67.50, charts show $62.50 next
  • 11 minutes The EU Loses The Principles On Which It Was Built
  • 19 minutes Batteries Could Be a Small Dotcom-Style Bubble
  • 3 mins Saudi Fund Wants to Take Tesla Private?
  • 1 min Downloadable 3D Printed Gun Designs, Yay or Nay?
  • 4 hours Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 1 hour Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 7 hours Saudi PIF In Talks To Invest In Tesla Rival Lucid
  • 6 hours CO2 Emissions Hit 67-Year Low In USA, As Rest-Of-World Rises
  • 16 hours How To Explain 'Truth Isn't Truth' Comment of Rudy Giuliani?
  • 14 hours Starvation, horror in Venezuela
  • 12 hours Corporations Are Buying More Renewables Than Ever
  • 18 hours Is NAFTA dead? Or near breakthrough?
  • 18 hours China still to keep Iran oil flowing amid U.S. sanctions
  • 17 hours Are Trump's steel tariffs working? Seems they are!
  • 8 hours Film on Venezuela's staggering collapse
Alt Text

U.S., China Trade War Puts A Lid On Oil

Negative signs for demand have…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

Venezuela’s Oil Rival Calls For Full U.S. Sanctions

Venezuela

Argentina’s President, Mauricio Macri, has called on the United States to install a full embargo on Venezuelan oil shipments. In an interview for the Financial Times, Macri said that the social situation in Venezuela is rapidly deteriorating and more decisive measures are needed to topple the Nicolas Maduro government.

It’s been said before more than once that a total oil embargo against Venezuela would hurt Gulf Coast refiners in a bad way, which is perhaps the only reason why it has not been used so far and remains unlikely to be used, whatever happens in Venezuela.

What’s more, the prospects for the country are not necessarily going to become brighter if Maduro is ousted, although this would certainly relieve the pressure between Caracas and Washington.

When recently news broke that Venezuela plans to restructure its debt, sparking concern that it can no longer service its hefty debt and a default is only a matter of time, we noted that not everyone is on board with this, besides the government.

Bondholders of Venezuelan debt are just fine with the payments Caracas is making, even if they are late, as the bonds carry a quite attractive coupon. What they are not fine with is the possibility of a default followed by fights about the order of repayment of the various debts.

Related: The U.S. Export Boom Goes Beyond Crude

Another thing bondholders and creditors are not fine with are statements from opposition leaders that if there’s a regime change in Caracas, they will stop servicing certain debts—debts that include a PDVSA bond purchased by Goldman Sachs, which, the opposition claims, covertly supported the Maduro government. The bank could suffer a paper loss of several million dollars on this bond if Venezuela defaults.

Argentina’s government in the meantime has been putting a lot of efforts into accelerating the exploitation of the country’s oil resources—a lot of them heavy oil, like Venezuela’s—by inviting all big oil majors to invest in new production, offering them appealing tax incentives and other terms.

According to at least one analyst, Macri “got away from himself” with his call for a full embargo. Cynthia Arnson from the Woodrow Wilson Center’s Latin American program says that “There is a deep concern about the situation in Venezuela and there is a deep dialogue about what to do, but there is also nobody calling for that tough of a line. That was an exaggeration by Macri because generally Latin America is opposed to any U.S. unilateral action.”

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News