US Signals Venezuela Oil Sanctions Relief at Risk as Deadline Looms

• The Biden administration has signalled that it could reimpose oil sanctions on Venezuela on Thursday, April 18, in response to what U.S. officials see as President Nicolas Maduro's failure to meet his commitments for free and fair elections this year.
• Barring any last-minute concessions by Maduro, the U.S. has made clear it is not likely to renew a six-month license that granted the OPEC member partial sanctions relief. The relief was in place from October, following an election deal reached between the government and the Venezuelan opposition.
• Washington had repeatedly threatened in recent months to reinstate punitive measures on Venezuela's vital oil and gas sector unless Maduro made good on his promises. These promises include allowing the opposition to run the candidate of its choice against him in the July 28 election.
• Weighing on the U.S. decision have been concerns about whether reimposing sanctions on Venezuela's energy sector could spur higher global oil prices and increase the flow of Venezuelan migrants to the U.S.-Mexico border as Biden campaigns for reelection in November.
• Maduro's government has repeatedly reacted in defiance of Washington's warnings. "International companies continue coming to Venezuela," Venezuelan Oil Minister Pedro Tellechea said in Caracas. "With or without sanctions, Venezuela will be respected."
• Venezuela's oil exports in March rose to their highest level since early 2020 as customers rushed to complete purchases ahead of the possible return of sanctions. 

(Source: Reuters)