Venezuela, Trump and oil
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The capture of Venezuelan President Nicolás Maduro has reopened a question the oil market has largely sidelined for years: What changes if Venezuela’s oil industry begins to normalize under U.S. influence?
It will take years and billions in investment to revitalize Venezuela’s oil industry, and energy producers will likely be cautious before stepping in.
At 7 a.m., the earth began to rumble. Suddenly, oil blew out of its well in a massive eruption that towered 200 feet in the air and sprayed the fearful villagers of La Rosa.
About a dozen oil tankers loaded with Venezuelan crude and fuel have left the country's waters since the start of the year in apparent defiance of the U.S. government's blockade on exports, according to documents seen by Reuters and industry sources including monitoring service TankerTrackers.
The ships are using deceptive tactics as part of a seemingly coordinated attempt to bypass American naval forces in the region.
Investors look to safe-haven assets like gold and silver to limit risk from the ongoing political instability in Latin America.
Trump said the US will “run” the country until safe leadership is installed. That same day, Venezuela’s Supreme Court installed Delcy Rodriguez – who oversees the country’s state-run oil company, Petróleos de Venezuela, SA – as interim president.
U.S. firms involved in the effort would face risks, León and Cinquegrana said. Chevron is currently the only U.S. oil firm operating in Venezuela, as part of a joint venture with the country's state-owned oil outfit.