HomeFutures and CommoditiesOpposition in Venezuela rejects resuming dialogue; US may consider easing sanctions, says...

Opposition in Venezuela rejects resuming dialogue; US may consider easing sanctions, says Reuters.

Venezuela’s Government and Opposition to Restart Talks as US Considers Easing Sanctions

Venezuela’s Political Negotiations to Resume

Venezuela’s government and opposition have announced their return to political negotiations, signaling a potential breakthrough in the country’s ongoing crisis. The United States is also considering easing sanctions if President Nicolas Maduro fulfills commitments related to a 2024 election.

Preliminary Deal to Ease Sanctions

According to sources in Washington, a preliminary deal has been reached between the United States and Venezuela. The agreement states that once Maduro’s representatives and the opposition sign an election agreement this week, the US will grant authorizations related to Venezuela’s oil business. However, any sanctions relief would be contingent upon Maduro sticking to his commitments.

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US Caution and Monitoring

The United States remains cautious due to Maduro’s history of failing to fulfill previous commitments. The US will closely monitor his compliance with the latest promises regarding the presidential election date and the lifting of bans on opposition candidates.

A Date for the Election and International Observers

The upcoming agreement between Maduro’s government and the opposition is expected to include a date for the election, set for the latter half of next year. It will also allow the participation of opposition figures currently barred from holding office and the presence of international observers.

Progress in Talks with Additional Incentives

Last week, it was reported that talks between Venezuela and the United States had made progress. As part of these talks, at least one additional foreign oil firm could receive incentives if Maduro resumes negotiations with the opposition. France’s Maurel & Prom, a joint venture partner with Venezuela’s state-run oil company PDVSA, is among the potential recipients.

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Impact on Oil Prices

News of the potential easing of sanctions has already affected oil futures, causing prices to fall. The ongoing Israel-Hamas conflict also continues to be a factor influencing oil prices, leaving investors assessing the overall impact.

Norway’s Role in the Talks

Norway, as an observer of the negotiations, released a statement announcing the return to talks. The aim of these talks is to find a way out of Venezuela’s long-standing political and economic crisis.

Primary Election and Future Candidates

The opposition is preparing to hold a primary to select its candidate for the 2024 election. However, front-runner Maria Corina Machado is currently banned from holding public office. On the other hand, Maduro is expected to run for re-election but has yet to formalize his candidacy.

Overall, the resumption of political negotiations and the potential easing of sanctions offer a glimmer of hope for Venezuela’s future. The agreement between the government and the opposition, alongside international support, could pave the way for a more stable and prosperous Venezuela.

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