The US Department of the Treasury has made a decision that allows the Venezuelan state company Petróleos de Venezuela S.A. (PDVSA) to sell oil directly to American firms and on international markets. This has been made possible by a new license that provides targeted relief from sanctions against Venezuela’s oil industry, but does not fully lift them.
This is reported by Finway
Conditions and Restrictions of the New US License
According to the document, only companies that existed before January 29, 2025, are allowed to purchase Venezuelan oil and conduct other transactions that were previously blocked. This enables the resumption of active oil trading with one of the world’s largest producers.
At the same time, strict restrictions are in place: payments for oil cannot go directly to organizations currently under sanctions (including PDVSA), but must be transferred to a separate account under US control. All financial flows related to this trade will be monitored by the US authorities.
“The US will allow oil trading but will control the cash flows.”
Additionally, any transactions involving Russia, Iran, North Korea, Cuba, or certain Chinese organizations remain prohibited. Transactions related to Venezuelan debt and bonds are also not allowed.
Impact on the Energy Market and Venezuela’s Economy
Separately, the White House announced the suspension for 60 days of the Jones Act requirements from the 1920s regarding the transportation of goods between American ports only on vessels flagged in the US. The Act is often blamed for rising gasoline prices due to limited competition in shipping.
This decision comes amid a sharp increase in oil prices caused by the war between the US, Israel, and Iran, as well as Iran’s blockade of the Strait of Hormuz—a strategic route through which about 20% of the world’s oil is transported. This has led to record-high prices at US gas stations in the last 2.5 years: the average price per gallon of gasoline has already exceeded $3.84, while before the conflict it was $2.98 per gallon.
Venezuela has the largest proven oil reserves in the world; however, corruption, mismanagement, and sanctions have led to a catastrophic decline in production: from 3.5 million barrels per day in 1999 to less than 400,000 in 2020.
It is expected that the partial easing of sanctions by the US will serve as a significant stimulus for the Venezuelan economy and increase investor interest in the country’s oil and gas sector.