Crude Outlook: US Engages Chevron and SLB to Rehabilitate Venezuela’s Oil Sector

The United States is advancing talks with energy giants Chevron and SLB to repair and expand Venezuela's oil infrastructure to stabilize global energy prices.

Expanding Operations

Reports indicate both firms are ready to ramp up operations, pending resolution of legal and payment mechanisms.

• Supply Impact: Rehabilitation could bring heavy crude to the market, narrowing WTI and Brent spreads.
• Sanctions Nuance: US prioritizing energy security over rigid diplomatic isolation.

Forex & Commodity Correlation

• Increased output adds a bearish factor to oil price forecasts.
• Pressure on the Canadian Dollar (CAD) due to crude price correlation.
• Easing GDP related inflationary pressures for Eurozone and Japan importers.