CERAWEEK-US sees 'negative signals' from Venezuela as sanctions loom

The United States is seeing some "negative signals" regarding Venezuela's commitment to free elections that could mean sanctions on its oil industry may not be extended, a U.S. State Department official said on Tuesday. Washington last year relaxed sanctions on Venezuela's oil industry in return for promises to open its presidential election to international observers and the opposition being able to choose its candidate, which has not happened.

The United States is seeing some "negative signals" regarding Venezuela's commitment to free elections that could mean sanctions on its oil industry may not be extended, a U.S. State Department official said on Tuesday.

Washington last year relaxed sanctions on Venezuela's oil industry in return for promises to open its presidential election to international observers and the opposition being able to choose its candidate, which has not happened. Geoff Pyatt, the U.S. assistant secretary of state for energy resources, said in an interview with Reuters he plans to meet with Latin American leaders this week to discuss progress towards free and fair Venezuelan presidential elections and the oil sanctions, emphasizing that sanctions easement would only be extended if conditions for a competitive elections are secured.

"There are a lot of negative signals recently (from Caracas). And there's no way to sugarcoat that," Pyatt said. "But we're not giving up, and we've got up until the end of April to see some progress." President Nicolas Maduro's administration has kept a ban on opposition front-runner Maria Corina Machado from registering her candidacy. Also, international observers are not expected to be present during the elections in July.

If a license granted in October easing the sanctions is not renewed next month, state oil company PDVSA would probably return to using intermediaries to sell its oil to buyers such as China, likely at discounts.