US Eyes Venezuelan Oil Stakes Amid Record Diesel Prices
The Trump administration is in talks to take an ownership stake in Venezuelan oil fields, according to CNBC correspondent Eamon Javers. The motive behind this move has more to do with what refineries can process than with global oil supply.
The US government wants to get rid of Chinese interests from the picture and make deals with Venezuela so that the United States can be the first partner to get some of that heavy, sour Venezuelan oil.
Diesel prices have hit record highs at $5.65 per gallon for the week ending August 24, but this has more to do with what refineries can process than with global oil supply.
The fields in question have been neglected for years and much of the country's export infrastructure has degraded through sanctions, mismanagement, and capital starvation.