LatAmOil: US oil policy on Venezuela to remain steady despite disputed election, official says

The Biden administration will not change its current oil sanctions policy on Venezuela, despite growing controversy surrounding the recent presidential election, a US official told reporters. This stance keeps in place the existing licences for US companies like Chevron to operate in the country, even as the legitimacy of President Nicolás Maduro's claimed victory is widely questioned.

Maduro asserts he won the July 28 election with 51.2% of the vote, while opposition candidate Edmundo González claims exit polls show him winning with 70% support. The US and many international parties are calling for the immediate release of detailed precinct-level polling data to verify the outcome.

"We are obviously in the process of evaluating these election results," a senior Biden administration official stated. "It is not currently under consideration that we would retroactively alter (oil) licences that have previously been given."

Meanwhile, US President Joe Biden has agreed to withhold judgement until the full vote tallies are released, indicating the global significance of this electoral dispute.

The impact on oil markets remains uncertain. As quoted by S&P Global, ClearView Energy Partners suggests that upside risks to crude prices could stem from potential US sanctions, civil unrest disrupting production or aggressive moves by Maduro against neighbouring Guyana's oil-rich Essequibo region.