Trump Revokes Oil License, Dealing Major Blow to Venezuela
US President Donald Trump announces cancellation of key license allowing Venezuelan oil exports to the US, citing electoral concerns and deportation delays.
In a major setback for Venezuela, President Donald Trump has announced the cancellation of a crucial license that allowed the country to export oil to the United States despite ongoing sanctions. The decision affects a joint venture between Venezuela’s state-run oil company PDVSA and US oil giant Chevron, which had provided the Venezuelan government with vital income in US dollars.
Trump justified the move by stating that Nicolás Maduro’s administration had failed to meet "electoral conditions" and had not repatriated "violent criminals" deported from the US swiftly enough. The Venezuelan government condemned the decision, warning it could worsen economic conditions and increase migration to the US.
Trump Reverses Biden’s Oil Policy
The announcement was made on Trump’s Truth Social account, where he declared he was "hereby reversing the concessions that Crooked Joe Biden gave to Nicolás Maduro" regarding the oil transaction agreement dated November 26, 2022.
While Trump did not specify which concessions he was referring to, the only license issued on that date was one from the US Treasury allowing Chevron to resume "limited natural resource extraction operations in Venezuela." The license permitted Chevron to collaborate with PDVSA but barred any payments of taxes or royalties to the Venezuelan government.
Chevron spokesman Bill Turenne confirmed the company complies with all US laws and sanctions, while Chevron CEO Mike Wirth previously warned that withdrawing US companies from Venezuela would enable China and Russia to expand their influence in the region. He also cautioned that the Venezuelan economy could further deteriorate, potentially driving more migration toward the US.
Opposition Backs Trump’s Decision
The Venezuelan opposition has long advocated for revoking the license, arguing that it provides the Maduro government with a financial safety net. The Biden administration had initially granted the license in 2022 as part of efforts to encourage Venezuela to hold free and fair elections.
However, even after Venezuela’s electoral council declared Maduro victorious in the July 2024 presidential election—a result rejected by the opposition and multiple international governments, including the US—the license remained in place.
Diplomatic Context and Migration Concerns
Trump’s decision comes shortly after his envoy, Richard Grenell, met with Maduro in Caracas. The visit secured the release of six detained US citizens and an agreement for Venezuela to repatriate deported nationals.
Despite this, Trump accused the Maduro government of failing to return deported criminals at an agreed-upon pace. In his post, he stated: "The regime has not been transporting the violent criminals that they sent into our Country (the Good Ole' U.S.A.) back to Venezuela at the rapid pace that they had agreed to." As a result, he ordered the termination of what he called the "ineffective and unmet Biden ‘Concession Agreement’" effective March 1.
Venezuelan Vice President Delcy Rodríguez responded by warning that past US sanctions had contributed to increased Venezuelan migration and that this latest move could trigger another wave of people heading toward the US.
Market Impact
The announcement had an immediate effect on global oil prices, which rose by more than 1% on Thursday following Trump's decision.
This latest development underscores the growing tensions between the US and Venezuela, as well as the broader geopolitical consequences of US sanctions and oil diplomacy.
Leave A Comment