The U.S Eases Sanctions on Venezuela

The U.S eased 3-year old sanctions on Venezuela's oil and gold sectors last week in exchange for an 2024 "election deal" to release bans on oppositions parties within the region. Let's be clear, "America" is the largest producer of crude oil in the world while the U.S corporation is the largest consumer on record. The U.S only has special drawing rights for the commodity given it access to reserves and exportation deals on American soil. The lifting of sanctions come at a crucial time for the corporation as Middle Eastern tensions restricts access of the commodity from import/export partners (Saudia Arabia, China, and India) in the region.

Venezuela has the largest oil reserves on record given it major brokering power for crude in the world. Think about it, with crude prices currently trading around $88/barrel after reaching session high weeks ago from OPEC's production adjustments, we could see a GLOBAL PRICE WAR as more supply is added to the markets. This a strategic move for the U.S to ally with its energy-rich neighbor to destabilize the price of the commodity as they loose traction in Middle Eastern regions.

We could see major volatility for crude oil around $87.50ish as markets try to balance Eurasian and now Middle Eastern tensions. In addition, Venezuela needs infrastructural and political reforms as the South America nations gets a breath of fresh air for the next six months.

Let's see how the 🎲 roll.

#Venezuela #USsanctions #crudeoil