The U.S. has ordered Chevron to cease operations in Venezuela within 30 days, disrupting essential revenue for the Maduro government. This directive reflects a swift policy change from Trump, who initially sought engagement with Maduro. Experts warn of severe economic repercussions, including recession and increased emigration, alongside a sharp decline in foreign reserves, amidst a moderate global oil market response.
The U.S. has ordered Chevron to halt its operations in Venezuela within 30 days, significantly impacting the financially stricken Venezuelan government. Chevron currently plays a crucial role, producing and exporting about 250,000 barrels of crude oil daily, which is essential revenue for Nicolás Maduro’s administration. However, the U.S. Treasury stated the deadline is unrealistic, reflecting a sudden shift in former President Donald Trump’s Venezuela policy.
In his first term, Trump adopted a “maximum pressure” strategy against Venezuela, focusing on sanctions and restricting U.S. oil companies. However, upon his recent return to office, he initially attempted to engage with Maduro by negotiating terms for the return of U.S. citizens and supporting a migrant deportation agreement. This approach, which included meeting with Maduro, earned him criticism from Florida Republicans who advocate for backing pro-democracy factions in Venezuela.
Following intense pressure and facing a budget vote, Trump revised his stance, accusing Venezuela of failing to hold fair elections and breaching their agreements. Analysts warn that halting Chevron’s exports could lead to a recession in Venezuela, exacerbating the country’s economic difficulties and causing increased emigration. Maduro risks losing approximately $150-200 million monthly in foreign reserves due to this decision, with Vice President Delcy Rodriguez asserting it harms the Venezuelan populace and elevates fuel prices.
Despite this news, global oil markets reacted moderately, particularly after OPEC’s recent announcement to boost production, although Chevron’s stock has declined by 2.8% recently. Venezuela’s oil output has plummeted from 3.5 million barrels per day to roughly one million, heavily influenced by low oil prices and stringent U.S. sanctions from 2014 to 2021. Notably, European companies such as Eni, Repsol, and Shell remain unaffected by this U.S. directive.
The U.S. government’s directive for Chevron to cease operations in Venezuela marks a significant change in policy towards the Maduro regime. While this decision is expected to deepen Venezuela’s economic crisis, analysts highlight the potential for increased emigration and a further decline in the country’s already limited foreign reserves. As oil markets adjust, broader implications on Venezuelan society and economy are likely to unfold.
Original Source: www.france24.com
