Selling such a vital good like oil to the United States of America would bring many benefits, but the industry must get built from scratch. Specialists say the cryptocurrency market should not get harmed by this event.
The economic scenario of Venezuela has been developing significant changes for citizens. These changes are the more excellent circulation of foreign currency, better payments than in previous years (at least in the private sector), and the exchange rate balance.
These changes became crucial now that hyperinflation stopped keeping Venezuelans on edge about the new price they will pay to access the most basic goods.
The element that is enabling this new alternative for Venezuela is war. The wave of sanctions and financial punishments against Russia due to the military clash in Ukrainian territory has made the United States re-take its stance regarding Venezuela as a possible provider.
An official delegation from the US government held conversations with Nicolás Maduro’s administration intending to find new ways to re-take the sale of Venezuelan crude to the United States of America. This action would lower costs for both nations refresh the Venezuelan economic system with healthy oil revenues.
The Joe Biden administration has denied that they are directly negotiating crude oil from Venezuela. According to White House spokeswoman Jen Psaki, the energy issue was on discussion, the White House acknowledged, although it later denied that there is an active negotiation.
Venezuela and Low Oil Production
Various experts agree that the possibility of resuming crude oil negotiations with the United States of America could be potentially positive for Venezuela. However, they also agree that carrying out this mission is not that simple.
A local industry that once generated more than 3 million barrels a day crumbled down as low as 400,000 barrels a day last year. And although it has recovered its previous rates by producing at least 860,000, this figure is still far from getting positioned as a balanced level.
The president of the Venezuelan Oil Chamber, Reinaldo Quintero, explained in a local media interview that he does observe an increase in crude oil production, even up to the level of 1,200 million barrels per day. And with this panorama, the country would handle a significant part of the energy sector’s demand in a market with such needs.
Leaving aside the low production rates, experts clarify that the doorways might be re-opening to negotiate oil with a country such as the United States of America would be advantageous for the generation of income through traditional exportation for the country.
By: Jenson Nuñez
