US delegation met with Venezuela leaders

A weekend visit to Venezuela by a high-level US delegation looking at energy security issues has local oil producers saying the country could send up to 400,000 b/d to US refineries if sanctions were lifted.

A delegation led by White House National Security Council senior director Juan Gonzalez met with President Nicolas Maduro as well as with Juan Guaido, the opposition leader that claimed the mantle of interim president in 2019. The purpose of the trip — the first by American officials since US president Joe Biden took office — was to discuss a range of issues, including energy security and the health of US citizens detained in Venezuela, according to the White House.

While its not clear if ending US sanctions on Venezuelan oil sales are on the table, Venezuelan oil chamber president Reinaldo Quintero said the country could send up to 400,000 b/d of crude to US refiners in short-order is sanctions were lifted.

President Joe Biden's administration has been forced to maintain the status quo on Venezuela sanctions despite acknowledging their lack of effectiveness due to strong opposition from senior Democrats and Republicans in the US Senate. But Russia's invasion of Ukraine, and the administration's interest in boosting global oil supply, are re-igniting interest in a negotiated solution with the Maduro government.

Argus estimates that Venezuela was producing 690,000 b/d in January, and most of what it exports go to allies China and Cuba.

By Carlos Camacho