Venezuelan oil is getting the boot from the US. Well, kinda, sorta, not really. Let me walk you through what’s going on.
Biden allowed Chevron to import Venezuelan crude to help lower gasoline prices, but Venezuela couldn’t meet their election-related obligations and the deal failed. Regardless, Biden’s motives were misguided as Venezuelan crude is such a small portion of US imports.
Trump came along and revoked that Chevron deal and is now focusing on deporting Venezuelan migrants (many of whom are highly skilled).
Regardless of the policy shift, global oil markets won’t be impacted. Venezuelan crude will likely continue to flow to the US, even if it takes a pit stop somewhere else for a “rebrand” – a page out of the Iranians’ playbook.
