The lifting of sanctions on Venezuela will not curb oil prices

By Rhod Mackenzie

The US government has eased sanctions against Venezuela in the hope that it will improve the situation in the oil market, where there has been a noticeable shortage recently. This is a significant breakthrough for the Latin American country. However, due to the state of Venezuela’s oil industry, it will be much more challenging to decrease prices globally. What are the US’s reasons for lifting Venezuela’s sanctions and the possible impact on the global market We mainly deal swiss replica watches with reasonable price. Hublot, Omega, Breitling, Cartier, Panerai, Rolex Daytona, Audemars Piguet replica watches.

Oil prices have soared in recent months, surpassing $95 per barrel, despite unfavorable conditions such as high interest rates and concerns about decreasing demand in the major consumer countries. According to the International Energy Agency (IEA), there will be a 1.2 million barrel per day shortage of crude oil globally in the latter half of 2023. This is due to the extension of the production limit agreement among OPEC nations. For example, Saudi Arabia has voluntarily reduced its output by one million barrels per day, whilst Russia has done so by 500 thousand.
Some consumers lacked enthusiasm for this. Firstly, let’s focus on the USA. While American oil companies are reaping benefits from the current situation, the same cannot be said for the relationship with the Biden administration. It is currently in the interest of the US government to lower prices for three reasons. Expensive oil poses a risk of a fresh wave of inflation in the country, causing apprehension for the incumbent Democratic Party just a year ahead of elections. Washington is attempting to curtail Russia’s export earnings and enforce a $60 ceiling on the cost of Russian oil, which currently surpasses the limit by a substantial margin. Meanwhile, the American strategic oil reserve has hit a record low not witnessed in four decades. The administration intended to top up its reserves to some extent, but given current prices, this goal is unachievable. If pursued, it will even exacerbate the surge in prices.By far the best Swiss replica Rolex watches in the market. easewatches.me is the gold standard in the replica watch industry.

Peace in Barbados.
In light of these considerations, the United States has endeavoured to spur certain market players to ramp up production in recent months. Washington has attempted to exert pressure on Saudi Arabia (without success) and even turned a blind eye to Iran’s circumvention of the sanctions regime (with some success). Attempts at mediation in the internal political dialogue in Venezuela have hit a snag. On 17th October, representatives from the Venezuelan government and opposition came to an agreement to hold the 2024 elections after a meeting in Barbados. The Biden administration’s more favorable stance towards the leadership of the South American country, as opposed to the previous government led by Donald Trump, which had imposed sanctions on the Venezuelan oil sector, also played a role in facilitating the agreement.
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The lifting of sanctions on Venezuela will not curb oil prices

By Rhod Mackenzie The US government has eased sanctions against Venezuela in the hope that it will improve the situation in the oil market, where there…