Washington: The United States and Venezuela are holding talks on allowing limited exports of Venezuelan crude oil to the US market, according to sources familiar with the discussions. The move comes as both countries navigate rising political tensions and strict US sanctions on Venezuela’s energy sector.
Officials said the talks focus on a possible arrangement that could allow several million barrels of Venezuelan oil to reach US refineries in the coming months. At current prices, the deal could be worth up to two billion dollars. However, no final agreement has been announced and negotiations remain at an early stage.
Venezuela’s oil industry has struggled for years due to sanctions, underinvestment and infrastructure problems. Storage facilities are nearing capacity, forcing the country’s state oil company, PDVSA, to limit production at several fields. Allowing exports to the United States could ease pressure on storage and provide a temporary outlet for unsold crude.
At present, Chevron is the only US company with limited permission to lift and export Venezuelan oil under existing licenses. Industry sources say any broader exports would require new approvals from US authorities and clear rules on how payments would be handled under sanctions.
The talks are taking place against a tense political backdrop. Relations between Washington and Caracas have sharply deteriorated in recent weeks, with strong reactions from the Venezuelan government following US actions against its leadership. President Donald Trump has said Washington wants greater control over how Venezuelan oil revenues are used, raising further questions about the future of the discussions.
Energy analysts say US refiners could benefit from access to Venezuela’s heavy crude, which is well suited for several Gulf Coast refineries. At the same time, they caution that Venezuela’s ability to quickly increase exports is limited due to years of declining production and operational challenges.
For now, both sides appear to be testing options rather than committing to a long term arrangement. Officials said further talks are expected, but warned that political and legal hurdles could still derail any deal to bring Venezuelan oil back to US ports.