Venezuela Threatened with US Oil Sanctions
The US is threatening to resume oil sanctions against Venezuela over election restrictions in the country.
This comes only days after Venezuela’s top court continued to ban a primary opposition candidate for president-Maria Corina Machado. Venezuela’s Supreme Court acted Friday to uphold a ban on Ms. Machado lasting for 15 years and preventing her from running for any public office.
The country’s primary elections place Ms. Machado as the top opposition candidate in the upcoming presidential election taking place this year.
The US is attempting to place pressure on the Venezuelan government and its courts by restricting oil trade. Sanctions were imposed back in 2019 when Venezuelan president Nicolas Maduro started a second term. The criticism at the time was that the election was not a free one and that Maduro had set himself up as a dictator.
Venezuelan Economic Crisis
Any sanctions against Venezuela’s oil sector would be devastating to the already weak economy. The oil industry is a vital part of its economy, and that economy has taken severe hits over the past few years.
There are currently 7.72 million Venezuelan refugees spread throughout the Americas, which has resulted in a crisis considered the largest of its kind in this region. The crisis was caused partly by Venezuelan President Maduro’s policies coupled with U.S. sanctions on the country’s oil industry. Prices for basic commodities skyrocketed in Venezuela in recent years, and at its worst, inflation got so bad that a carton of eggs cost a week’s wages for the average worker.
The US alleviated some of those restrictions back in October when Maduro’s government started working with the opposition. An agreement between the countries was supposed to result in a fair and free election for 2024. If it appears that the Venezuelan government is not keeping up with its part of the bargain, the US government is free and clear to impose more oil restrictions.
Oil prices were up today in response to a forecast from the International Monetary Fund. The Venezuelan restrictions and a recent Middle East drone attack could both affect oil prices. Brent is trading at $82.80, while West Texas Intermediate is trading at $77.56 a barrel.
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