Trump cancels Venezuelan oil deal as Canadian, Mex tariffs loom

https://www.westernstandard.news/business/not-a-drop-to-drink-trump-cancels-venezuelan-oil-deal-as-canadian-mex-tariffs-loom/62592

American oil policy got a little bit murkier on Thursday after Washington ditched a Venezuelan oil deal, Mexican exports fell by more than a third and US president Donald Trump prepared to move ahead with tariffs on Alberta oil imports.

Trump announced the decision on Truth Social media platform, stating that he was “hereby reversing the concessions that Crooked Joe Biden gave to Nicolás Maduro under a 2022 oil transaction agreement.”

The move, which takes effect on March 1, is expected to disrupt Venezuela’s economy and further tighten global oil markets already under pressure due to a sharp decline in Mexican crude exports and looming tariffs on its largest source of imported crude from Canada. Venezuela is also a member of OPEC.

All three countries provide a heavier barrel favoured by US Gulf Coast refiners. Despite a 10% tariff, it will be extremely difficult if not impossible for American processors to swap out supplies from Canada from either Mexico or Venezuela.

The Venezuelan licence had allowed Chevron to run joint ventures with Venezuela’s state-run oil company, PDVSA, providing one of the few remaining sources of US dollars to the Maduro government despite broader sanctions.

Trump justified the revocation by citing Maduro's failure to meet “electoral conditions” and its alleged slow pace in accepting deported Venezuelan migrants, including individuals he described as “violent criminals.” Continue…