Biden gives Chevron permit to restart Venezuelan oil sales
The move could help ease global oil prices and speed the declines in U.S. gasoline prices.
The Treasury Department granted permission Saturday for oil giant Chevron to produce and export oil from Venezuela following the South American country’s decision to restart talks with opposition groups.
The move could add supply to the global oil market, which may ease fuel prices and speed the declines in U.S. gasoline prices that have been a political burden for President Joe Biden since Russia invaded Ukraine in February.
But a senior administration official said the easing of sanctions was not driven by the oil market pressures and was instead a response the Venezuelan regime’s decision this week to participate in the negotiations with opposition groups. Those talks, which were originally launched in Mexico City in September 2021, are expected to focus on humanitarian programs and setting future elections.
“This action is not being taken in response to energy prices, this is a limited license. As we have said in the past, this is about the regime taking the steps needed to support the restoration of democracy in Venezuela,” the official said.
The oil supplies affected under the new license would have likely have gotten to customers via the black market, the official said.
The decision to allow Chevron to resume shipments from the South American nation comes ahead of a Dec. 5 deadline for tightened sanctions on Russia that could roil the world’s oil markets. The G-7 and European Union are moving to restrict Russian petroleum exports and impose a price cap on petroleum sales.
https://www.politico.com/news/2022/1...sales-00070836