UPDATED 11:43 AM PT — Wednesday, January 16, 2018
The U.S. is reportedly considering imposing sanctions on Venezuela’s oil sector. According to reports, White House officials warned U.S. refiners about a possible oil embargo against Venezuelan crude-exports.
Venezuelan state-run oil company PDVSA would reportedly be the primary target of new sanctions.
Chevron, Valero, and PBF Energy are the biggest consumers of Venezuelan crude in the U.S., and could be affected by the possible move.
This comes as the White House has refused to recognize Nicolas Maduro’s presidential reelection.
“We’ve imposed tough new sanctions on Nicolas Maduro’s sham of a government,” stated Vice President Mike Pence. “Just this week, we unequivocally condemned the arrest of Juan Guido, the president of the National Assembly, after he invoked protections under Venezuela’s constitution and declared Maduro’s presidency illegitimate.”
Experts have warned a oil embargo on Venezuela could push U.S. oil prices up, resulting in higher input costs for U.S. refiners and higher revenues for U.S. drillers.