American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Latest News

Oil majors face challenges after US cancels Venezuelan licenses

by admin March 31, 2025
March 31, 2025
Oil majors face challenges after US cancels Venezuelan licenses

French oil company Maurel et Prom experienced a significant drop in share prices, plummeting 15% in early trading on Monday. 

This sharp decline was triggered by an announcement from the company that its license to operate in Venezuela had been revoked by the United States, according to a Reuters report. 

The revocation of this license represents a major setback for Maurel et Prom’s operations and financial outlook, as it effectively bars the company from continuing its activities in the Venezuelan oil sector. 

This development highlights the risks and challenges faced by international oil companies operating in politically volatile regions, where changes in government policies and sanctions can have a profound impact on their business.

Additionally, Spain’s Foreign Minister Jose Manuel Albares stated that the government will defend Repsol’s interests after the Spanish oil company was notified that its Venezuelan oil licence had been revoked on Monday.

Tariff on Venezuelan oil buyers

Last week, US President Donald Trump announced that his administration will impose 25% tariffs on countries buying oil and gas from Venezuela, which had already shaken up the crude market. 

Market participants remained concerned about the impact of the new sanctions, while refineries that rely heavily on Venezuelan crude may have to look at other options. 

Meanwhile, the prospect of restricting supply could push crude oil prices higher, putting further pressure on economies around the world.

Furthermore, Eni, an Italian oil and gas company, confirmed on Sunday that it was notified by US authorities that it would no longer be permitted to receive crude oil from Venezuela’s PDVSA as payment for natural gas production in the country.

The Biden administration had permitted individual companies to source Venezuelan oil for refineries located in countries ranging from Spain to India.

These authorizations were exceptions to the US sanctions on Venezuela during the former US President’s term.

Indonesian M&P affected

In May 2024, M&P, which is majority-owned by the Indonesian government, was granted a license for its 40% consolidated interest in Petroregional del Lago, a Venezuelan firm that operates the Urdaneta Oeste field in Lake Maracaibo.

The US Treasury Department’s Office of Foreign Assets Control (OFAC) revoked the company’s license on March 28, according to a press release from the company.

The revocation includes a wind-down period until May 27.

It added:

M&P is currently assessing the implications of this decision in close consultation with its legal advisers.

On Monday, M&P shares fell 15% in Paris, Repsol dipped 1.5% in Madrid, and Italy’s Eni experienced a slight decline.

India’s Reliance Industries, which operates the world’s largest refining complex, will also stop importing Venezuelan oil. 

This decision comes after the US imposed a 25% tariff on countries that purchase crude oil from Venezuela, according to media reports. 

LSEG data revealed that the Indian conglomerate has been importing an average of 2 million barrels of Venezuelan crude oil per month. This follows the approval granted by US authorities last year.

The post Oil majors face challenges after US cancels Venezuelan licenses appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Marine Le Pen convicted of EU fund embezzlement, banned from public office
next post
Paul Marchant resigns as Primark boss after admitting an “error of judgment”: what’s next for the retail giant?

Related Posts

Former Spanish soccer federation chief Rubiales to stand...

May 10, 2024

China’s Chang’e-6 probe successfully lands on far side...

June 3, 2024

Young Thai activist’s death in detention after 65-day...

May 17, 2024

Why Saudi Arabia’s oil exports to China may...

March 15, 2025

Argentina’s black market for dollar falters as President...

May 18, 2025

China halts Boeing jet deliveries amid rising US-China...

April 15, 2025

China holds key lending rates steady amid trade...

March 20, 2025

Oil prices sink to over 4-year low on...

April 5, 2025

How to watch the first crewed flight of...

May 7, 2024

ECB cuts rates by 25 bps as inflation...

April 18, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • GMS stock jumps 29% on takeover interest from Home Depot, QXO, analysts raise PTs

      June 22, 2025
    • Japan’s rice price surge: what’s driving it and why it could spark a political crisis

      June 22, 2025
    • BofA raises STOXX 600 target amid resilient global growth, warns on Mideast risks

      June 22, 2025
    • Palantir co-founder: US must prevent Iranian nukes

      June 22, 2025
    • Fed governor Waller advocates for July rate cut amid tariff, labor market outlook

      June 21, 2025

    Categories

    • Business (3,209)
    • Investing (2,537)
    • Latest News (2,000)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved