The implementation of tough US sanctions on Venezuela in January effectively cut off the Opec country’s biggest crude customer.Now China,its second-biggest buyer,seems to be wavering too,despite its longtime support of the regime of Venezuelan President Nicolas Maduro,which Washington seeks to topple(IOD Jan.29’19).The unilateral US sanctions,which will officially ban US imports of Venezuelan oil on Apr.28-even though US refiners had largely stopped purchases by mid-March-were seen as a possible opportunity for big Asian importers like China and India to buy more Venezuelan crude at discounted prices(IOD Jan.30’19).But Washington has also been exerting pressure on non-US companies to steer clear of Venezuelan crude,making banks,shippers,insurers,traders and refiners-basically anyone involved in Venezuelan crude deals-wary of getting involved.If the Maduro stalemate continues or the crisis in Venezuela worsens,the Trump administration could also decide to add further pressure on Caracas by using secondary sanctions-the type applied on Iran that specifically target foreign buyers of Venezuelan crude.Such considerations can make crude importers around the world hesitant.
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