New sanctions could be on the way for Venezuela’s oil industry as the country’s controversial president, Nicolas Maduro, retaliated against opposition leaders after prevailing in a disputed July referendum, according to MarketWatch.
The referendum paved the way to a rewrite of the nation’s constitution and tighten Maduro’s grip on power, action that had sparked deadly protests.
Venezuelan oil production outages would likely send ripple effects through the oil market, a bullish factor, at least short term, across the crude market, analysts said. On July 31, Treasury Secretary Steven Mnuchin announced the Trump administration had sanctioned Maduro, freezing any of his personal assets held within the U.S.
Maduro seemed unfazed by the sanctions; on August 1 Venezuelan authorities dragged two opposition leaders from their homes after Maduro vowed to jail opposition politicians who had accused him of electoral fraud.
Mnuchin didn’t rule out broader sanctions, which could include banning U.S. imports of Venezuelan crude or restricting exports of U.S. oil to Venezuela. Of the two, the former could give administration officials some pause given the uncertainty surrounding its impact on U.S. gasoline prices and other factors, analysts said.
Venezuela is the third largest supplier of oil imports to the U.S., accounting for 10% of U.S. oil imports. (Source: MarketWatch))
Articles are chosen for summary in this Market Intelligence blog based on newsworthiness in conjunction with The Infinite Loop themes. Any opinions and views expressed in the articles are generally those of the underlying author from the source listed, are not necessarily current as of the date of this blog, may change as market or other conditions change, and may differ from views expressed by Ivy Investment Management Company and its associates or affiliates. Actual investments or investment decisions made by Ivy Investment Management Company and its affiliates will not necessarily reflect the views expressed in the articles. These articles are distributed for educational purposes only and are not investment advice or a recommendation to purchase, sell or hold any specific security mentioned in the article or to engage in any investment strategy. Investment decisions should always be made based on each investor’s specific financial needs, objectives, goals, time horizon and risk tolerance. Securities discussed may not be suitable for all investors.