U.S. Tightens Grip on Venezuelan Oil Exports: A Policy Shift

The U.S. government has notified foreign partners of Venezuela's state oil company PDVSA about the cancellation of authorizations to export Venezuelan oil. This decision, made under the Trump administration's guidance, marks a shift in U.S. policy towards Venezuela and impacts numerous international partners involved in Venezuelan oil imports.

The United States government has announced the impending cancellation of licenses allowing foreign enterprises to export Venezuelan oil and its byproducts, altering its stance on Venezuelan oil trade. This announcement marks a significant shift from the policies of former President Joe Biden, who had previously granted exceptions to sanctions on the South American country.

Companies like Spain's Repsol, Italy's Eni, France's Maurel & Prom, and India's Reliance, along with others, had benefited from these permissions. However, many had already ceased importing Venezuelan oil after Trump's recent imposition of secondary tariffs on purchasers of Venezuelan oil and gas.

The policy shift also underscores the broader U.S. approach to Venezuela as it seeks to curb migration with a focus on Venezuelans. Officials have indicated that foreign oil companies operating in Venezuela will soon receive guidance on new protocols, a change that Venezuelan President Nicolas Maduro has decried as an 'economic war.'

(With inputs from agencies.)