Venezuela's Pursuit of Former Oil Clients After US Lifts Sanctions
Venezuelan state-run oil company PDVSA has started reaching out to customers with crude supply contracts following the temporary lifting of US sanctions, allowing the resumption of cash sales to global refiners. The six-month relaxation of sanctions aims to encourage a fair presidential election in Venezuela next year but is not expected to significantly boost oil production or immediately lead to stronger exports. PDVSA's trading division has lost skilled staff, which may slow down negotiations and limit new export deals. The license changes could help increase PDVSA's cash flow by reducing the number of middlemen selling its oil at a discount. However, not all US sanctions on PDVSA have been lifted, and the company's earnings have been heavily curtailed in recent years.