• 20 hours PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 22 hours Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 1 day Syrian Rebels Relinquish Control Of Major Gas Field
  • 1 day Schlumberger Warns Of Moderating Investment In North America
  • 1 day Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 1 day Energy Regulators Look To Guard Grid From Cyberattacks
  • 1 day Mexico Says OPEC Has Not Approached It For Deal Extension
  • 1 day New Video Game Targets Oil Infrastructure
  • 1 day Shell Restarts Bonny Light Exports
  • 1 day Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 2 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 2 days British Utility Companies Brace For Major Reforms
  • 2 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 2 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 2 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 2 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 2 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 2 days Rosneft Signs $400M Deal With Kurdistan
  • 2 days Kinder Morgan Warns About Trans Mountain Delays
  • 3 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 3 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 3 days Russia, Saudis Team Up To Boost Fracking Tech
  • 3 days Conflicting News Spurs Doubt On Aramco IPO
  • 3 days Exxon Starts Production At New Refinery In Texas
  • 3 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 4 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 4 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 4 days China To Take 5% Of Rosneft’s Output In New Deal
  • 4 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 4 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 4 days VW Fails To Secure Critical Commodity For EVs
  • 4 days Enbridge Pipeline Expansion Finally Approved
  • 4 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 4 days OPEC Oil Deal Compliance Falls To 86%
  • 5 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 5 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 5 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 5 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 5 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 5 days Aramco Says No Plans To Shelve IPO
Kuwaiti Minister: OPEC Deal Extension May Be Unnecessary

Kuwaiti Minister: OPEC Deal Extension May Be Unnecessary

Kuwaiti Oil Minister Al-Marzouk has…

Controversial Azeri Pipeline Receives $500M Funding

Controversial Azeri Pipeline Receives $500M Funding

The European Bank of Reconstruction…

Washington Could Suspend Oil Exports To Venezuela

Venezuela

The U.S. government is discussing sanctions against Venezuela’s oil industry after yesterday’s Constituent Assembly election that Washington’s UN ambassador Nikki Haley called a “sham”. According to sources who spoke to Reuters on condition of anonymity, punitive measures are unlikely to include a ban on Venezuelan oil exports, but could involve suspending U.S. light crude exports to the South American country.

The Trump administration already announced a fresh round of sanctions against 13 senior Venezuelan government officials last week. When the new round will be made public remains unclear. There is an option of delaying the sanctions in case the situation in Venezuela escalates further. Also, the sources said, the timing and severity of the measures will seek to avoid causing further suffering to the Venezuelan people and protecting U.S. economic interests.

If the U.S. stops importing Venezuelan oil, the Gulf Coast refineries will have a serious shortage of heavy rude on their hands and will need to find alternative sources urgently, which would sharply push up gasoline prices.

Suspending U.S. light crude exports to Venezuela is a more viable option: PDVSA imports crude from the U.S. to mix it with its heavy blends to make oil products. During the first four months of this year, PDVSA imported about 18,750 bpd of U.S. crude oil through Curacao. This is not a huge amount, but cutting it off would make life harder for the state oil company until it finds an alternative.

The Constituent Assembly vote, called by President Nicolas Maduro to amend the constitution, which many see as an attempt to cement himself in power, saw a turnout rate of 41.53 percent or 8 million votes, according to Xinhua. Besides the U.S., Venezuela’s neighbors, including Peru, Chile, Argentina, and Brazil have also called on Maduro to not go ahead with the election but rather focus on dialogue with the opposition.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • royal phoenix on July 31 2017 said:
    Trump is all talk, no action. Oh he froze some stolen assets, big deal.
  • Naomi on July 31 2017 said:
    Better to bar heavy crude to CITGO owned by Venezuela. Or freeze all accounts of CITGO. This would spare American heavy oil refiners while inflicting maximum financial losses on Venezuela.
  • JB Smith on July 31 2017 said:
    Good report. Thank you. What a weak response that would be from the Trump administration, though, in the face of an oil-charged narco state that shakes its machete at America. Venezuela can and does get that light oil from sources other than US. Would, in effect, serve little more than a symbolic gesture, just playing with the margins, as Maduro continues to starve his subjects into submission the Castro Way. Why even bother with it?

Leave a comment

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