The U.S. Is Running Out Of Ways To Influence Oil Prices
The U.S. Is Running Out Of Ways To Influence Oil Prices | OilPrice.com
Politics, Geopolitics & Conflict
The Biden Administration has moved to lift sanctions on Venezuela’s oil industry under the guise of concessions from the Maduro regime, which now has said it could see new elections held in 2024. Meanwhile, crude oil prices are running hot after the war between Israel and Hamas raised geopolitical tensions in the Middle East, along with Russia and Iran falling under Western sanctions - although neither has seen much losses to their oil exports. With the SPR only half full and Cushing inventories operating near operational minimums, the Biden Administration is running out of options - and countries to sanction. Some analysts are estimating that lifting sanctions on Venezuela could boost production by 25%, but it is unlikely that a country such as Venezuela– which has mismanaged its oil infrastructure for decades - will be able to ramp up production in that quantity immediately. Venezuela’s state-run oil firm is now reaching out to former refiner clients with which it has crude supply contracts in an effort to reestablish oil sales. The restrictions on Venezuela will be lifted for a period of six months.
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