A Venezuelan Oil Embargo Would Wipe Out Maduro And Co?

Latin American nation is heavily dependent on its physical links with US oil industry. US embargo on Venezuela covering imports and exports of crude oil and oil products could be what one oil person called “the headshot” for the Maduro government, and a whipsaw in Venezuelan bond prices. U.S. oil and oil products exports to Venezuela are not far from an all-time high, on the order of 80,000-100,000 barrels a day, compared to about 500,000 barrels a day of imports from Venezuela. US refiners are among Venezuela’s last remaining suppliers of “diluent”. That is the naphtha or light crude that is necessary to make the thick Venezuelan crude flow into the pipes and tankers that take it to market. Most of Venezuela’s other possible foreign suppliers of diluent have been burnt by non-payment. This has left the Venezuelans tightly bound to the supply chain of several large US Gulf Coast refineries...

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Before of this "scenario", poor people from Venezuela are dying of hunger. They already have a humanitarian disaster.

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1 hour ago, Petar said:

Latin American nation is heavily dependent on its physical links with US oil industry. US embargo on Venezuela covering imports and exports of crude oil and oil products could be what one oil person called “the headshot” for the Maduro government, and a whipsaw in Venezuelan bond prices. U.S. oil and oil products exports to Venezuela are not far from an all-time high, on the order of 80,000-100,000 barrels a day, compared to about 500,000 barrels a day of imports from Venezuela. US refiners are among Venezuela’s last remaining suppliers of “diluent”. That is the naphtha or light crude that is necessary to make the thick Venezuelan crude flow into the pipes and tankers that take it to market. Most of Venezuela’s other possible foreign suppliers of diluent have been burnt by non-payment. This has left the Venezuelans tightly bound to the supply chain of several large US Gulf Coast refineries...

@Petar It's my understanding that the US buys Venezuela's oil at a discount, so there's no benefit for the US to apply an embargo. There's also some geopolitical risk associated with such move, China, Iran, Russia all have their hands in Venezuela so there might be some national security concerns as well. Bonds at some point were yielding 100%+ and US banks like Goldman Sachs are quick to take the opportunity to refinance some debt and get a share of the pie, so even the investment community would be affected.

Now, the effects would be, in my humble opinion, less than desirable for parties in the US and to be honest it would only make Maduro and company to get a stronger hold of power. Again, this is about survival for them, the moment they leave power, they are either jailed or killed.

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