Potential US sanctions on the Venezuelan oil sector: price and flows implications

This report analyses two scenarios under discussion in the US government that could potentially disrupt oil trade between the two countries: Scenario 1, sanctions banning US companies from importing Venezuelan crude oil  Scenario 2, sanctions banning US companies from exporting crude oil and refined products to Venezuela While none of these scenarios directly impact Venezuelan oil production, they could affect the country’s oil revenue by exposing the OPEC producer to less favorable markets for selling oil and importing diluent and refined products. In the very short term imports into Venezuela could be delayed until credit conditions with the new suppliers are confirmed.