The United States has been trying to cripple the Venezuelan government’s ability to secure funds.
However, so called “nuclear option”, a full oil embargo, targeting the industry, is not used yet by the US. Industry sector is responsible for more than 90% of the country’s revenue.
Despite of the high tensions between the USA and Venezuela, the US refineries are still purchasing Venezuelan petroleum. Moreover, Venezuela owns one of the refineries in Texas through a subsidiary called CITGO.
But as the Washington backs the opposition leader Juan Guaido’s claim to the presidency, the crisis escalates more than in the past. In addition, a new round of sanctions is expected in the next few days.
Mike Pompeo, US Secretary of State failed to secure backing from the United Nations Security Council against Venezuela on Sunday, as China and Russia are close Maduro allies.
President Maduro demanded earlier the US diplomats to leave the country. He added that both countries have only 30 days to set new terms of their relationship.
Markets are looking for the US next action. Despite of the failure in the Security Council, US government has been supported by Argentina, Brazil and Colombia.
Finally, there are fears of a global slowdown in the economy and Venezuelan crisis will surely cause this downturn.
Certainly, Venezuela would be the biggest loser of all as the country has the world’s largest proven oil reserves – even bigger than Saudi Arabia.