Will more crude oil enter the market? The United States is negotiating with Venezuela on sanctions waivers

According to five sources, talks between Venezuela and the United States are making progress.If Venezuelan President Nicolas Maduro resumes talks with the opposition in Mexico, the United States could allow at least one other foreign oil company to access Venezuelan crude oil to pay off its debt, which would mean sanctions on Venezuela would be eased.

Since last year, envoys from Venezuela and the United States have held several meetings in Doha to restart efforts to resolve Venezuela's long-standing political and economic crisis, including discussions on presidential elections.

according toIndustrial foreign exchangeAccording to sources,Separate talks between Maduro's envoy and the Venezuelan opposition are expected to take place in Mexico in the coming weeks.

Washington, which imposed sanctions on Mr. Maduro after he was re-elected in 2018, has been trying to encourage talks with his political opponents over elections and other demands.

Two of the sources said companies that could be "untied" by the US and repaid with Venezuelan oil included Maurel & Prom, one of the joint venture partners of state-owned PDVSA.

A spokesperson for Maurel & Prom confirmed that the French company had "made a request in this regard to the US authorities" but declined to elaborate.

The State Department, the foreign ministries of Venezuela and Qatar, and PDVSA did not respond to requests for comment.Foreign media could not immediately verify whether the United States would ease sanctions directly after Venezuela resumed talks with the opposition.

"We are prepared to provide sanctions relief if Venezuela takes concrete action to restore democracy and support free and fair elections," a White House spokesperson said last week. "At this time, Venezuela has not taken the necessary steps and our sanctions remain in effect."

Sources in Washington confirmed that...The negotiations have made substantive progress in recent weeksHowever, he cautioned that with negotiations ongoing, it may be too early to talk about any final agreement.

The sources said that in addition to the possible lifting of sanctions, the agenda of the US-Venezuela meeting also included a long-standing request by the Venezuelan opposition for the release of prisoners, guarantees of an electoral system, and a possible solution to the influx of Venezuelan migrants into the United States.

The United States announced last week that it would re-deport Venezuelans who have illegally crossed the border, a move aimed at curbing record numbers of migrants. Two sources said the decision was made after an agreement was reached with Maduro's envoy in Doha.

moreCrude oil willEnter the market

Earlier this year, U.S. officials drafted a broad proposal to ease sanctions on Venezuela's oil industry.If the South American country moves towards free elections, more companies and countries will be allowed to import Venezuelan crude oil.

The proposal includes reimposing oil sanctions on Venezuela by amending existing U.S. executive orders or issuing new ones, so that buyers in Europe and elsewhere can resume imports of Venezuelan oil in a structured and organized manner.

If the new authorization is granted this time, they will provide relief to energy companies that have been trying to get paid in Venezuela for years.In the long run, this could help the South American country achieve its goal of doubling crude oil production.

In the past, easing sanctions has been a carrot thrown by Washington, but it has rarely been approved. But since last November,Chevron has received approval to expand its operations in Venezuela and export oil to the United States.

More and more energy companies are lining up to receive similar authorizations so that they can honour outstanding debts in Venezuela and work with PDVSA to revive oil and gas production.

Repsol and Eni also received permission from the United States last year, allowing them to resume importing Venezuelan crude oil as a way to repay their debts.