USA wants to allow limited oil production in Venezuela – Commerzbank

The US government is apparently considering that US oil companies resume limited operations in Venezuela. This was reported by five familiar sources with the matter, says CommerzBank raw material analyst Carsten Fritsch.

The US oil inventories are currently well below the average of five years

“As under the former US president Biden, licenses will be issued for this purpose. US President Trump had arrested this practice at the beginning of his second mandate. As a result, US imports of crude oil and oil products of Venezuela fell to 175,000 barrels per day in April, after being around 300,000 barrels per day at the beginning of the year.”

“Before Sanctions were imposed on the Maduro regime during Trump’s first mandate in 2019, US oil imports from Venezuela amounted to more than 600,000 barrels per day. The apparent Trump change could be due to the tight supply situation in the US.

“In addition, there is a shortage of heavy crude oil with a high sulfur content, that US refineries need as a slight and low shale oil additive Venezuela will accept this. “

Source: Fx Street

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