Chevron Stock: Trump Reverses Venezuela Oil License

Chevron's shares faced pressure following President Trump's unexpected announcement reversing concessions granted to Venezuela by the Biden administration in November 2022. This policy shift directly impacts Chevron's valuable license that had allowed the company to expand oil production in Venezuela and import Venezuelan crude into the United States. The license was originally part of Biden's strategy enabling Chevron to recover up to $3 billion in outstanding debts. Prior to this authorization, U.S. sanctions imposed in 2019 due to election irregularities had severely restricted American business operations in Venezuela. The reversal represents a significant setback for Chevron's South American operations and future revenue projections.

European Energy Companies Unaffected For Now

While Chevron confronts major operational constraints, European energy corporations including Spanish Repsol, Italian Eni, and French Maurel Prom continue operating in Venezuela with special permissions from the U.S. State Department. These licenses allow these companies to exchange PDVSA's crude oil for refined products, helping alleviate fuel shortages in the OPEC nation. January statistics showed that oil exports through active U.S. licenses averaged 450,000 barrels daily, representing 52% of Venezuela's total exports, though China remained the primary destination for Venezuelan oil despite these arrangements.

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Source StockWorld