US Treasury Department Tightens Sanctions on Venezuela Oil SectorWashington is targeting diluent imports, hurting Venezuela’s ability to export oil and produce fuel. | WHAT REALLY HAPPENED

US Treasury Department Tightens Sanctions on Venezuela Oil SectorWashington is targeting diluent imports, hurting Venezuela’s ability to export oil and produce fuel.

The US Treasury Department has announced a hardening of measures against Venezuela’s oil industry.

In an amendment to the Venezuela sanctions published on Thursday, Washington stated that the existing licenses, which allow certain companies to continue dealing with Venezuela state oil company PDVSA for a given period, “do not authorize transactions or dealings related to the exportation or reexportation of diluents, directly or indirectly, to Venezuela.”

Venezuela relies on imports of diluents to blend its heavy crude into exportable grades, as well as produce gasoline and diesel for internal consumption.

Venezuela’s declining oil production was significantly worsened by the impact of US economic sanctions, with crude output dropping by 30 percent, from an average of 1.911 million barrels per day (bpd) in 2017 to 1.354 million in 2018, following the August 2017 financial sanctions imposed by the Treasury Department.

Output further fell in 2019 as a result of the late January US embargo as well as nationwide blackouts in March, falling to just 740 thousand bpd in March before rebounding slightly in April. Output in May has reportedly fallen 17 percent from April. Oil exports to the US fell from over 500 thousand bpd in January to zero in late May, as the three month winding down period from January’s measures came to an end.

Webmaster's Commentary: 

The motivation here is very simple; bring Venezuela, economically, to its knees, to the point where it becomes ripe, for "regime change".

But the question I have to ask is, how much longer will Russia and China, put up with this monkey business, before they intervene in some way or another, either economically, or militarily?!?

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