Chevron Skeptical About Scope For Venezuelan Oil Growth: Report

Chevron Corporation CVX reportedly perceives a constrained path ahead for Venezuela's oil production expansion, even as the country received a reprieve from U.S. sanctions.

The reprieve was part of a broader initiative by the U.S. to lighten sanctions on the Venezuelan oil industry following a political accord in the run-up to the elections in 2024, reported Reuters.

A newly granted general license from the U.S. Treasury Department now allows Venezuela to engage freely in oil production and sales for a period of six months.

This development provides a temporary window for the South American nation to tap into its oil reserves.

At the Argus European Crude Conference, Patti Leigh, Chevron's Vice President of Crude Supply and Trading, expressed skepticism regarding the immediate effects of this license.

"The trick there is it's a six-month license," she stated, as per the report, indicating that the short-term nature of the authorization may not lead to substantial investments or significant growth in Venezuela's oil sector.

Also Read: Top 4 Energy Stocks That Are Set To Fly This Month

Price Action: CVX shares are trading lower by 1.76% at $144.42 on the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.