Venezuela’s limited oil sanctions relief

Washington’s move to ease restrictions on Caracas will likely have a more meaningful impact on US refiners than global crude markets

The US suspended selected sanctions on Venezuela on 18 October in response to the signing of an “electoral roadmap” between the Maduro government and the political opposition. Most observers are sceptical over how much of an impact the apparent rapprochement might have on the global oil markets, given the temporary nature of the sanctions relief and Venezuela’s degraded production capabilities. That is not to say the step will not move the dial for the US oil industry itself, which relies on heavier, sourer grades—typically from Canada—to blend with lighter, sweeter home-grown grades. So any extra flows from Venezuela—a traditional supplier of crude to its North American neighbour—will certa