U.S. Ban May Offer China and India Feast of Cheap Venezuelan Oil

Trump administration said to mull sanctions on Venezuela crude
U.S. search for alternative supply may boost heavy-oil grades

Bloomberg’s Davis explains why China and India may benefit from a possible U.S. sanction on Venezuela’s oil industry.(Source: Bloomberg)

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By Serene Cheong and Sharon Cho

January 24, 2019 at 9:56 AM UTC

Updated on

January 25, 2019 at 12:37 AM UTC

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A possible move by Donald Trump to hurt Venezuela’s oil industry could prove a shot in the arm for the Xi Jinping and Narendra Modi administrations.

If the U.S. decides to deploy a slate of sanctions that it’s said to have drafted against the Latin American nation, American refiners -- the No. 1 consumer of Venezuelan crude exports -- would be forced to cease purchases. That may mean more supply becomes available for the OPEC producer’s other big customers: China and India.