U.S. sanctions on Venezuela are an attack against the stability of the global oil market, Venezuelan Oil Minister Manuel Quevedo said on June 21.
Venezuela, a member of OPEC, and state-run oil firm PDVSA face an export crisis due to declining crude output, a lack of cash for spare parts and equipment, and a loss of employees fleeing due to hyperinflation and severe recession.
President Trump’s administration has been increasing sanctions on various Venezuelan nationals and companies, part of a campaign to pressure socialist President Nicolas Maduro to make political and market reforms.
The sanctions “are a direct attack against the stability of the oil market”, Quevedo said in a speech at an OPEC seminar in Vienna, describing what he called an “unconventional war with the world’s largest oil consumer”, the U.S.
“Venezuela’s situation should not be ignored. Venezuela could be any of your countries,” Quevedo told his fellow OPEC ministers.
The country is pumping about 1.5 million barrels per day (MMbbl/d) of oil, Quevedo said earlier. Venezuela pumped about 2.373 MMbbl/d as recently as 2016, Thomson Reuters data shows.
Recommended Reading
US Threatens to Not Renew Venezuelan Energy Sector License
2024-01-31 - The U.S. Department of State alerted Venezuela that it could decide not to renew General License No. 44 amid what Washington has labeled “anti-democratic actions.”
US Companies Ponder Future in Venezuela as Washington Pressures Maduro on Elections
2024-01-26 - The pressure is on again for Venezuela’s President Nicolás Maduro to announce a clear election timeline amid tensions following recent arrest orders and detentions of his opposition supporters.
US Orders Most Companies to Wind Down Operations in Venezuela by May
2024-04-17 - The U.S. Office of Foreign Assets Control issued a new license related to Venezuela that gives companies until the end of May to wind down operations following a lack of progress on national elections.
US Decision on Venezuelan License to Dictate Production Flow
2024-04-05 - The outlook for Venezuela’s oil industry appears uncertain, Rystad Energy said April 4 in a research report, as a license issued by the U.S. Office of Assets Control (OFAC) is set to expire on April 18.