US to Ease Sanctions on Venezuela to Boost Oil Supply: Report

US to Ease Sanctions on Venezuela to Boost Oil Supply: Report

TEHRAN (Tasnim) – The US is preparing to loosen the sanctions regime against Venezuela in an effort to boost oil production and ease the energy crisis, according to the Wall Street Journal.

The US government may soon reduce sanctions on Venezuela, allowing Chevron and other oil companies to resume oil drilling there. This comes just hours after OPEC+ countries announced a cut in oil supply by two million barrels per day (bpd). The report said that lifting sanctions may allow oil exports from Venezuela to the US and Europe.

In return, the Venezuelan government led by Nicolas Maduro has agreed to resume talks with the opposition, the WSJ report added. The deal also includes freeing up millions of dollars of Venezuelan funds that have been frozen in the US.

The funds, once released, will be used by Venezuela to recover from the economical slump, they are in currently. It recorded an inflation rate of 114.1 percent year-on-year in September.

During the 1990s, Venezuela was among the top suppliers of oil to the world. It exported over 3.2 million barrels per day. The sanctions against the country were imposed by the Donald Trump administration.

The agreement is expected to be revealed by the end of October.

Venezuela is now exporting about 450,000 barrels a day and could double that figure in a matter of months, WSJ said.

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