Thursday, July 20, 2017

What are Trump’s options in Venezuela?


The United States is the primary source of hard currency keeping the Venezuelan government afloat. Venezuela exports an average of 700,000 barrels of oil a day to the U.S., about half its total exports. Because much of the other half serves as payment of debt owed to China, a total cut in exports to the U.S. would slash Venezuelan government income by 75 percent, Angel Alvarado, a member of congress and economist, told The Associated Press. Venezuelan oil accounts for about 10 percent of U.S. oil imports, meaning a cut in oil from Venezuela could have an impact on consumer gasoline prices and on U.S. refineries. Miguel Tinker Salas, an expert in Venezuela history at Pomona College in California, said U.S. officials likely fear that any disruption in the oil market would increase prices in the U.S. There is also skepticism over whether economic sanctions are an effective means of encouraging a political opening. More…

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