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US tamps down talk of Venezuela sanctions relief

  • Spanish Market: Crude oil
  • 19/05/21

Washington has no immediate plans to ease sanctions against Venezuela's oil sector or change its policy of forcing the country's president, Nicolas Maduro, to agree to a new election, a senior US official said today.

President Joe Biden's administration also will continue to prohibit oil-for-diesel swaps used by Spain's Repsol and Italy's Eni until last year to lift Venezuelan crude, nominee for assistant secretary of state for the western hemisphere, Brian Nichols, told the Senate Foreign Relations Committee today.

Maintaining status quo on Venezuela policy, despite acknowledging its shortcomings, shows how little the country has featured in the new US administration's initial foreign policy priorities. Firms like Repsol have used the change of guard in Washington to argue on humanitarian grounds for a reprieve in the economic pressure tactics against Venezuela, particularly for allowing non-US companies to lift Venezuelan crude in exchange for supplying diesel that is used in power generation, agriculture and public transport.

Those arguments have found an eager audience among US lawmakers representing the Democratic party's progressive wing. Maduro's recent overtures toward his opponents present an opportunity that the US should encourage, senator Chris Murphy (D-Connecticut) told Nichols.

But Nichols said the Biden administration is wary of relieving the sanctions pressure against Maduro's government "that has shown that it will use dilatory tactics to prevent progress toward free and fair elections." The US administration, which does not recognize Maduro's government, is pushing Caracas to schedule a new presidential election, release political prisoners and allow free press.

Nichols also downplayed the humanitarian argument in favor of restoring the diesel swaps. "There is enough diesel capacity within Venezuela, at least for the next six months or so," Nichols said. The Biden administration is still reviewing its overall Venezuela policy, and would consider changing its policy on diesel swaps "if we see that there is a problem there for the Venezuelan people," he said.

While the US is considering diesel production capacity in Venezuela as sufficient, at least some sectors of the economy appear to face fuel shortages.

Venezuelan opposition leader Juan Guaido, whom the US recognizes as the country's interim president, has come under pressure from Venezuelan farmers that have struggled to maintain operations and distribute produce because of the diesel shortages, tightening food supply. In a press conference today, Guaido blamed the shortages on government corruption and shipments to Cuba, rather than the sanctions.


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02/10/24

US tries to shape Israel's response to Iran: Update

US tries to shape Israel's response to Iran: Update

Updates with additional comments by President Biden starting in second paragraph. Washington, 2 October (Argus) — US president Joe Biden today called on Israel to keep its expected retaliatory strike proportionate after an Iranian missile attack on Tuesday. "We'll be discussing with the Israelis what they're going to do," Biden told reporters. The US and other G7 countries agree "that they have a right to respond, but they should respond in proportion", he said. The US would not support an attack by Israel on sites associated with Iran's nuclear program, Biden said. For its part, the immediate US response would include new sanctions, he said. Biden reached out to fellow leaders of the G7 group of advanced democracies on Wednesday "to coordinate on a response to this attack, including new sanctions", the White House said. The US Treasury Department today imposed sanctions on two additional tankers allegedly engaged in transporting Iranian crude to China. The Gabon-flagged Izumo and the Marshall Islands-flagged Frunze allegedly also transported Russian crude in contravention of the G7 price cap on Russian exports, Treasury said. Including today's action, the US sanctions list now totals 302 tankers and other vessels accused of facilitating Iran's oil and other commodity exports since 2019, including 68 tankers added by Treasury's sanctions enforcement arm this year. That has not succeeded in stopping the flow of Iranian crude to China, as Tehran has developed a sophisticated network of intermediaries and "shadow fleet" tankers to bypass US sanctions. Biden, who ordered US naval and military assets in the region to shoot down Iranian missiles aimed at Israel, promptly declared Tehran's barrage of missiles to have been ineffective. The nearly 200 missiles launched by Iran appeared to be targeting military sites but did not cause significant damage, and the only reported fatality is of a Palestinian civilian in the West Bank, according to the White House. The White House is holding consultations with Israel to help shape its response to the attack. "Iran made a big mistake and it will pay for it," Israeli prime minister Benjamin Netanyahu said following the Iranian attack, which came hours after Israel launched a ground invasion of Lebanon. Netanyahu referenced the aerial strikes that decapitated the leadership of the Iran-backed Hezbollah militant group in Lebanon, noting that "the regime in Tehran does not understand our determination to defend ourselves and to exact a price from our enemies". Tehran, in turn, said "we will respond in a more severe manner" if Israel retaliates with strikes against Iran. A previous Iranian missile attack on Israel in April led to a restrained Israeli retaliation on targets inside Iran, with the US, China and other regional powers intervening to prevent a further escalation. The Biden administration has tried to balance support for Israel's self-defense with efforts to prevent an escalation of the conflict that could engulf the world's largest oil producing region on the eve of the 5 November US presidential election. The Iran-Israel confrontation featured at Tuesday's televised debate between the US vice-presidential candidates, but neither offered an explicit plan for how the US should respond to the Iranian attack. The response from US lawmakers similarly fell along partisan lines, with the Democrats backing efforts by the White House to prevent further escalation, while the Republicans called for a stronger response. Iranian "oil refineries need to be hit and hit hard because that is the source of cash for the regime to perpetrate their terror", senator Lindsey Graham (R-South Carolina) said. Graham made similar calls in April and in October 2023, at the outset of the Gaza conflict. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US tries to shape Israel's response to Iran attack


02/10/24
02/10/24

US tries to shape Israel's response to Iran attack

Washington, 2 October (Argus) — US president Joe Biden's administration is working to moderate a likely retaliatory strike by Israel after an Iranian missile attack on Tuesday. The US would not support an attack by Israel on sites associated with Iran's nuclear program, Biden told reporters today. Biden reached out to fellow leaders of the G7 group of advanced democracies today "to coordinate on a response to this attack, including new sanctions," the White House said. The US Treasury Department today imposed sanctions on two additional tankers allegedly engaged in transporting Iranian crude to China. The Gabon-flagged Izumo and the Marshall Islands-flagged Frunze allegedly also transported Russian crude in contravention of the G7 price cap on Russian exports, Treasury said. Including today's action, the US sanctions list now totals 302 tankers and other vessels accused of facilitating Iran's oil and other commodity exports since 2019, including 68 tankers added by Treasury's sanctions enforcement arm this year. That has not succeeded in stopping the flow of Iranian crude to China, as Tehran has developed a sophisticated network of intermediaries and "shadow fleet" tankers to bypass US sanctions. Biden, who ordered US naval and military assets in the region to shoot down Iranian missiles aimed at Israel, promptly declared Tehran's barrage of missiles to have been ineffective. The White House is holding consultations with Israel to help shape its response to the attack. "Iran made a big mistake and it will pay for it," Israeli prime minister Benjamin Netanyahu said following the Iranian attack, which came hours after Israel launched a ground invasion of Lebanon. Netanyahu referenced the aerial strikes that decapitated the leadership of the Iran-backed Hezbollah militant group in Lebanon, noting that "the regime in Tehran does not understand our determination to defend ourselves and to exact a price from our enemies." Tehran, in turn, said "we will respond in a more severe manner" if Israel retaliates with strikes against Iran. The previous Iranian missile attack on Israel, in April, led to a restrained Israeli retaliation on targets inside Iran, with the US, China and other regional powers intervening to prevent a further escalation. The Biden administration has tried to balance support for Israel's self-defense with efforts to prevent an escalation of the conflict that could engulf the world's largest oil producing region on the eve of the 5 November US presidential election. The Iran-Israel confrontation featured at Tuesday's televised debate between the US vice-presidential candidates, but neither offered an explicit plan for how the US should respond to the Iranian attack. The response from US lawmakers similarly fell along partisan lines, with the Democrats backing efforts by the White House to prevent further escalation, while the Republicans called for a stronger response. Iranian "oil refineries need to be hit and hit hard because that is the source of cash for the regime to perpetrate their terror," senator Lindsey Graham (R-South Carolina) said. Graham made similar calls in April and in October 2023, at the outset of the Gaza conflict. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Middle East intrudes in US election campaign


01/10/24
01/10/24

Middle East intrudes in US election campaign

Washington, 1 October (Argus) — The escalating confrontation in the Middle East as Israel exchanges blows with Iran and Iran-backed militias provides a rare foreign policy interlude in the US presidential campaign that remains too close to call. "The US is fully, fully, fully supportive of Israel," President Joe Biden told reporters today after US and Israeli military forces appeared to have successfully averted serious damage from a direct Iranian missile attack on Israel. "The attack appears to have been defeated and ineffective, and this is testament to Israeli military capability and also a testament to intensive planning [between] the US and Israel to anticipate and defend against a brazen attack," Biden said. The Democratic candidate for president, vice president Kamala Harris, joined Biden at the White House situation room to monitor the Iranian missile attack and the US response to it, the White House said. The Republican candidate, former president Donald Trump, ahead of the expected attack accused Biden and Harris of acting insufficiently tough against Iran. "The World is on fire and spiraling out of control," Trump said via social media before it became apparent that the Iranian missile attack failed. "We have no leadership, no one running the Country. We have a non-existent President in Joe Biden, and a completely absent Vice President, Kamala Harris, who is too busy fundraising in San Francisco." Harris has been in Washington since Monday, in part to attend briefings by federal officials about the ongoing response to the damage caused in Georgia, South Carolina and North Carolina by the remnants of Hurricane Helene. Trump in campaign appearances over the weekend accused Biden and Harris of inaction during Hurricane Helene and said he would personally lead relief efforts in Georgia even though federal emergency officials have been providing support to the victims of flooding and heavy rains that have caused significant damage. Biden and Harris plan to separately visit the affected areas later this week. The Middle East region has been braced for Iran to attack Israel since the leader of Palestinian group Hamas, Ismail Haniyeh, was killed in Tehran in July. Tensions have grown in recent weeks after Israel stepped up attacks against Lebanon's Iran-backed Hezbollah militia, culminating in the killing of the group's leader Hassan Nasrallah in Beirut on 27 September. The previous Iranian missile attack on Israel, in April, led to a restrained Israeli retaliation on targets inside Iran, with the US, China and other regional powers intervening to prevent a further escalation. WTI crude futures closed today's session up by more than 2pc on news of the Iranian attack and the Israeli invasion of Lebanon. Futures retraced some of the gains made earlier in the trading session after it became apparent that the Iranian attack failed to cause significant damage. Biden told reporters today that he has yet to recommend a specific course of action for Israel following today's Iranian missile attack. "We are having that discussion right now" with the Israeli government, Biden said, adding that it "remains to be seen" how Israel would respond. The Iran-Israel confrontation is likely to feature at a televised debate later tonight between Trump's vice-presidential nominee, senator JD Vance, and Harris' running mate, Minnesota governor Tim Walz. The Vance-Walz encounter is the last scheduled debate of the election season. Harris suggested another televised debate with Trump after holding one in September, but Trump has declined the offer. Polls indicate that the presidential race is too close to accurately forecast. Harris has held a steady, small lead in nationwide polling since becoming the Democratic nominee in July but the outcome of the election will be determined in the Electoral College, with seven states — Michigan, Wisconsin, Pennsylvania, North Carolina, Georgia, Arizona and Nevada — likely to determine the overall result. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Mexico's Sheinbaum to present energy transition plan


01/10/24
01/10/24

Mexico's Sheinbaum to present energy transition plan

New York, 1 October (Argus) — Mexico's new president, Claudia Sheinbaum, will present a plan to attract new investments in the electricity sector and an "ambitious" energy transition strategy. Sheinbaum, Mexico's first female president, ratified the commitment made by former-president Andres Manuel Lopez Obrador of maintaining 54pc of the electricity generation in the hands of state-owned utility CFE and providing "clear rules" for private-sector companies to invest in the remaining 46pc. In her inauguration speech to congress, Sheinbaum said it was in the best interest of all Mexicans to have a strong public company in the electricity sector to provide cheap power to households. She promised that prices for electricity, gasoline and LPG will not rise faster than general inflation. The Mexican congress approved the process to change the constitution to give more power to CFE in prioritizing electricity dispatch over private-sector companies. Sheinbaum also said crude production will not go above 1.8mn b/d during her term, as it is "impossible" to reach the 3mn b/d promised under the 2014 energy reform without harming the environment. The increase in energy demand in Mexico will be met by renewable sources, she said. Among her economic priorities is attracting more international manufacturers to bring their plants to Mexico to take advantage of nearshoring — moving production closer to main markets. Her administration will also continue to implement the controversial bill to overhaul the judicial system passed in the last month . By Edgar Sigler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Iran launches missile attack on Israel: Update 2


01/10/24
01/10/24

Iran launches missile attack on Israel: Update 2

Updates with details throughout. London, 1 October (Argus) — A missile attack by Iran against targets in Israel has not resulted in significant damage or many fatalities, according to the White House and the Pentagon. Iran today launched over 200 missiles against Israel after Israeli forces had begun ground operations in southern Lebanon. The Middle East region has been braced for Iran to attack Israel since the leader of Palestinian group Hamas, Ismail Haniyeh, was killed in Tehran in July. Tensions have grown in recent weeks after Israel stepped up attacks against Lebanon's Iran-backed Hezbollah militia, culminating in the killing of the group's leader Hassan Nasrallah in Beirut on 27 September. The Iranian missile barrage aimed at Israel "appears to have been defeated and ineffective," White House national security adviser Jake Sullivan said in the aftermath of the attack. At the direction of President Joe Biden, "US naval destroyers joined Israeli air defense units in firing interceptors to shoot down inbound missiles," Sullivan said. "We do not know of any damage to aircraft or strategic military assets in Israel," and the only reported fatality is of a Palestinian civilian in the West Bank, Sullivan said. Chevron said it shut in its Tamar and Leviathan gas platforms offshore Israel for a brief period of time, as a precautionary measure, adding that "we can confirm that our people and facilities are safe." The US had forewarning of the Iranian attack, which it shared with Israel. Biden and vice president Kamala Harris monitored the Iranian attack and the US response to it from the White House situation room. November Nymex WTI peaked at $71.94/bl earlier in Tuesday's session, but retraced those gains after the attack appeared to have inflicted little damage. The last Iranian direct missile attack on Israel, in April, led to a restrained Israeli retaliation on targets inside Iran, with the US, China and other regional powers intervening to prevent a further escalation. How Israel will retaliate this time remains to be seen, and the US, at least publicly, is not restricting its ally's possible actions. "We've had some initial discussions with the Israelis in the aftermath of this, at the military level and also at the White House to prime minister's office level," Sullivan said. "We are now going to look at what the appropriate next steps are to secure, first and foremost, American interests, and then to promote stability to the maximum extent possible." By James Keates and Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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