Venezuela talks inch toward election deal

  • Spanish Market: Crude oil, Oil products
  • 11/07/19

The Venezuelan government and US-backed opposition are inching toward an agreement on holding new presidential elections in nine months, but closely watched negotiations are still far from unraveling the Opec country's protracted conflict.

Diosdado Cabello, president of the National Constituent Assembly (ANC) and leading radical political figure in the government, declared that President Nicolas Maduro will not step aside to allow new presidential elections next year. "There will not be any presidential elections in 2020," Cabello said on his weekly television program last night. Maduro "will continue as president and the only elections that could be held in 2020 are National Assembly elections," Cabello said, referring the opposition-controlled legislature that most western countries deem the last democratically elected body in Venezuela.

Cabello's remarks appear to undercut the negotiations brokered by Norway in Barbados this week between representatives of Maduro and opposition leader Juan Guaido, who since January 2019 has been recognized as Venezuela's interim president by more than 50 countries.

But an aide to Guaido, who has yet to issue a statement on this week's encounter in Barbados, said Cabello is only seeking to torpedo the talks that have made progress toward elections without Maduro. Government officials echoed that view, asserting that Cabello is trying to protect his position.

The two delegations have left Barbados for a pause in the talks, but they are set to continue, another Guaido aide said.

The government's negotiating agenda included the possibility that Maduro would not be a candidate in presidential elections, but he would handpick his potential successor, a presidential palace official told Argus.

Also on the government agenda is the appointment of new authorities to the National Electoral Council (CNE) by joint consensus, combining new presidential and National Assembly elections, the return of elected deputies from the the ruling United Socialist Party (PSUV) to the current assembly before elections, the release of up to 800 political prisoners, and the immediate lifting of all US sanctions against state-owned oil company PdV and dozens of Maduro government officials, the palace official said.

Guaido maintains that the assembly should complete its constitutional term, meaning new legislative elections would not be held until the first week of December 2020, according to officials in his Voluntad Popular party and other opposition groups.

The opposition's main demand is Maduro's immediate resignation, making way for a transition government headed by Guaido ahead of presidential elections in nine months. Other key priorities are an overhaul of the CNE, the dissolving of the ANC and the release of all political prisoners.

Cabello last night dismissed any possibility of dissolving the ANC, a body that was established in 2017 as part of a Maduro government strategy to sideline the National Assembly. The foreign governments that support Guaido maintain that the ANC is an illegitimate and unconstitutional body.

The government wants to combine presidential and legislative elections because the PSUV believes it would sweep both contests, particularly if the fractured opposition coalition's parties turn against each other in a scramble for seats in the next legislature.

Current Miranda state governor Hector Rodriguez, a 37-year-old attorney and senior PSUV leader considered a moderate young socialist, could be the ruling party's choice to compete against Guaido in new presidential elections, the palace official said.

Guaido could stand for president following a transition period, but he is more likely to cede the way for more senior opposition figures, including his political mentor Leopoldo Lopez who is currently holed up in the Spanish diplomatic residence in Caracas.

Opposition parties in Guaido's coalition including Accion Democratica (AD), Primero Justicia (PJ), and Zulia-based Un Nueva Era (UNT) support the dialogue, but their leaders individually also harbor ambitions to compete for the presidency.

Opposition leader Maria Corina Machado of Vente Venezuela, a party that is outside Guaido's Democratic Unity coalition (MUD), aspires to be Venezuela's first woman president. Her steadfast rejection of negotiations is backed by former Caracas mayor Antonio Ledezma and former Venezuelan ambassador to the UN Diego Arria, even though this trio supports Guaido.

This week's talks promoted by the EU were a blow to Washington, which has been tightening sanctions on Venezuela since January in a bid to force Maduro out of power, and has warned against any negotiated deal that leaves Maduro or his associates in place.

Earlier today, the US Treasury Department sanctioned Venezuela's military intelligence agency DGCIM. The move follows the arrest and apparent death by torture of navy captain Rafael Acosta Arevalo.

The US has oil sanctions on Venezuela since 28 January, and financial sanctions have been in place since August 2017.


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06/05/24

Brazil unlocks relief spending to flooded state

Brazil unlocks relief spending to flooded state

Sao Paulo, 6 May (Argus) — Brazil's president Luiz Inacio Lula da Silva signed a decree to ease relief spending to Rio Grande do Sul state, which has been hit with historically heavy rainfall and floods. "We are going to do everything in our power to contribute to Rio Grande do Sul's recovery," he said today after signing the decree, adding that was only the first of "a large number of acts" for the state. The decree recognizes the state of emergency in Rio Grande do Sul and allows the federal government to grant funding and tax waivers to the state without having to comply with spending limits. In addition, it makes rules for public authorities to contract services and purchase products more flexible. The decree still needs both senate and congressional approval — which should be hasty, as both the senate and house leaders were present at the decree's signing. It is still not clear how much money it will take to rebuild the state, chief of staff Rui Costa and planning minister Simone Tebet said. But the minister of regional integration Waldez Goez estimated that it will take around R1bn ($200mn) to rebuild the state's highways. Rio Grande do Sul has been hit with heavy rainfall since 29 April. The highest volumes reached the central areas of Rio Grande do Sul, with cities receiving rainfall of 150-500mm (6-20 inches), regional rural agency Emater-RS data show. The monitoring station of Restinga Seca city, in the center of the state, recorded rainfall of about 540mm. Rainfall in Rio Grande do Sul overall surpassed 135mm in most of the state, according to the US National Oceanic and Atmospheric Administration (NOAA). State capital Porto Alegre is expected to receive more rain later this week, according to Rio Grande do Sul-based weather forecaster MetSul. MetSul warned that parts of the Porto Alegre metropolitan area could remain uninhabitable for weeks or months. The floods have left at least 83 dead and 111 missing, according to the state government. An additional 130,000 people have been displaced from their homes. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

ANP reduz mescla de etanol e biodiesel no RS


06/05/24
06/05/24

ANP reduz mescla de etanol e biodiesel no RS

Sao Paulo, 6 May (Argus) — A Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP) diminuiu, temporariamente, a mistura obrigatória de etanol e biodiesel no Rio Grande do Sul por 30 dias, a partir de 3 de maio, em meio a enchentes catastróficas no estado. O mix de etanol anidro na gasolina caiu dos atuais 27pc para 21pc, enquanto o do biodiesel no diesel S10 está agora em 2pc, queda em relação à porcentagem vigente de 14pc. Também de forma temporária, a agência suspendeu a necessidade de mistura para o diesel S500. A ANP informou que pode revisar os prazos da medida dependendo das condições de abastecimento no estado. As chuvas no Rio Grande do Sul bloquearam rodovias e ferrovias que transportam os biocombustíveis para centros de distribuição, como Esteio e Canoas. O fornecimento de combustíveis fósseis pela ligação dutoviária da refinaria Alberto Pasqualini (Refap) às outras bases de distribuição do entorno não foi comprometido, afirmou a ANP. As enchentes no estado já deixaram pelo menos 83 mortos e 111 desaparecidos, de acordo com o governo local. Mais de 23.000 pessoas tiveram que deixar suas casas e cerca de 330 cidades estão em situação de calamidade pública. Por Laura Guedes Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2024. Argus Media group . Todos os direitos reservados.

Brazil lowers biofuel mix in flooded state


06/05/24
06/05/24

Brazil lowers biofuel mix in flooded state

Sao Paulo, 6 May (Argus) — Brazil's oil regulator ANP temporarily decreased the mandatory mix of ethanol and biodiesel in fuels in Rio Grande do Sul state for 30 days, starting on 3 May, amid floods in the region. The anhydrous ethanol blend on gasoline was lowered to 21pc from the current 27pc, while the mandatory biodiesel mix for 10ppm (S10) diesel is now at 2pc, down from the usual 14pc. The agency also temporarily suspended the blending mandate for diesel with 500ppm of sulfur (S500). ANP said it can revise deadlines depending on supply conditions in the state. Rainfall in Rio Grande do Sul blocked railways and highways where biofuels are transported to retail hubs, such as Esteio and Canoas. Supply of fossil fuels via pipeline from the 201,000 b/d Alberto Pasqualini refinery (Refap), in Canoas, and other retail bases has not been compromised, ANP said. Floods in Rio Grande do Sul have left at least 83 dead and 111 missing, according to the state government. More than 23,000 people have been forced from of their homes amid widespread damage. Over 330 cities are in a situation of public calamity. By Laura Guedes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

North Germany sees May holiday gasoline surge


06/05/24
06/05/24

North Germany sees May holiday gasoline surge

Hamburg, 6 May (Argus) — Driving activity in Germany increased around the public holiday on 1 May, leading to a rise in regional demand for fuels, particularly gasoline, in the past week. Oversupply of diesel is also pressuring premiums in Europe. Daily volumes of diesel and E5 gasoline reported to Argus this week were higher than the average for the current year. Demand for gasoline in the North region notably increased, with reported volumes in the past week reaching the highest daily average in 2024. The filling station sector is almost entirely responsible for the increased demand, market participants said. Many end-users took Monday and Tuesday off as additional holidays, leading up to 1 May. This resulted in a temporary increase in travel activity. In anticipation of this, filling station operators stocked up on fuel. But compared with previous years, overall demand for diesel in Germany remains weak. Coupled with plenty supply of diesel on the international market, this has led to premiums of cif Hamburg in April reaching their lowest level since July 2023. In the face of oversupply the difference between cif Hamburg diesel and cif ARA assessment fell further as well over the past week. The volume of diesel imported to northern Germany increased by 18pc in April compared with March, reaching around 71,000 b/d, data from Vortexa show. The low premiums of the diesel cif assessments, along with the ICE Gasoil Future's contango — which has encouraged the storage of product in tanks since mid-April — have particularly boosted import demand. By Johannes Guhlke Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Panama's new president faces copper, canal issues


06/05/24
06/05/24

Panama's new president faces copper, canal issues

Kingston, 6 May (Argus) — Stand-in candidate Jose Raul Mulino will take office on 1 July as president of Panama with a challenge to decide on the future of one of the biggest copper mines in the Americas. The 64 year-old lawyer won yesterday's presidential election in the central American country, promising a "pro-investment and pro-business" policy. He won with 35pc of the vote and an about 10 percentage point lead over his next closest rival, Ricardo Lombana. But he has delivered no comment on the future on the shuttered Canadian-owned copper facility that is one pillar of the country's economy. His government will use public works projects and incentives for foreign investors to restore economic growth, Molino said, without giving details. Panama also faces a crippling drought that has lowered water levels and reduced transit through the economically important Panama Canal. First Quantum intends to meet the new government to discuss reopening the mine, the company's chairman Robert Harding said in March. "Whatever government is elected, we will work with it," Harding said. "We would like to see this mine reopen." Panama closed the $10bn Cobre Panama mine after a supreme court ruling in November that First Quantum's contract was unconstitutional. The mine accounted for 5pc of the country's economy and 1.5pc of global copper output, according to the government. The shutdown will limit the country's economic growth to 2.5pc this year against 7.5pc in 2023, the IMF has forecast. The supreme court's order to close the mine followed weeks of protests over the terms given to First Quantum in October. Protests wracked the country as opposition parties, trade unions, environmental lobbies and non-governmental organizations objected to the terms. "Although the mine's owners would be happy to negotiate a reopening with the new administration, this is a very hot and controversial matter for the new government," a senior official of the outgoing government of President Laurentino Cortizo told Argus today. "Any suggestion of negotiating a reopening would again bring people on the streets." Mulino ran with former president Ricardo Martinelli until the courts disqualified Martinelli because of a money laundering conviction. Martinelli had proposed that Panama renegotiate the contract with First Quantum to secure higher royalties and a stake. "Mulino is a mentee of Martinelli, but I doubt he would stoke public anger by seeking to reopen the mine," the official said. Cobre Panama produced 331,000 t in 2023, 5pc less than 2022 output, First Quantum said. By Canute James Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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