More than 24 hours after the United States announced large-scale sanctions on Venezuela’s nationally owned oil company, merchant trading firms and refiners were still deciphering what the measures prohibited.
The sanctions, announced on Monday, are aimed at driving President Nicolas Maduro from power, the strongest US measures yet against the socialist president who has overseen economic collapse and an exodus of millions of Venezuelans in recent years, Reuters reported.
Traders who sell Venezuelan crude to the United States are looking for avenues to keep crude flowing during the sanctions.
The sanctions froze assets of state-run PDVSA and required US firms to pay for oil using accounts controlled by the country's opposition party head and self-proclaimed interim president, Juan Guaido.
PDVSA is seeking to sidestep the restrictions by asking major buyers, including US refiners, to renegotiate contracts, sources said.
Oil sanctions in the past have been evaded by using intermediaries, said Scott Maberry, who specializes in international trade at Sheppard Mullin law firm, but he doubted that would happen with PDVSA.
Oil prices rose on Wednesday as concerns about supply disruptions following US sanctions on Venezuela’s oil industry outweighed downward pressure from a darkening outlook for the global economy.
US West Texas Intermediate crude futures were at $53.43 per barrel, 12 cents, or 0.2%, above their last settlement. International Brent crude oil futures rose 17 cents, or 0.3%, to $61.49 per barrel.
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