Chevron's Venezuelan Oil Operations Shutdown Amid US Political Shift

The US government has revoked a permit allowing Chevron Corp. to pump and export Venezuelan oil, ending a crucial financial channel for Venezuela. The permit's cancellation comes after accusations that Venezuela's government failed to meet democratic standards in elections. Chevron's long-standing operations in Venezuela are now in jeopardy.

The United States government has terminated a permit that allowed Chevron Corp. to pump and export oil from Venezuela, a move that effectively ends a critical financial channel for the South American country. The decision, announced by President Donald Trump, comes amid allegations that the Venezuelan government did not meet democratic standards in last year's presidential election.

President Trump's announcement marked a reversal of concessions previously granted by President Joe Biden to Venezuela's leader Nicolás Maduro. The permit, a general license exempting Chevron from certain economic sanctions, enabled the company to engage in oil transactions with Venezuela despite widespread international restrictions.

The revocation of the permit could spell trouble for Chevron's operations, which are carried out in partnership with Venezuela's state-owned oil company, Petroleos de Venezuela S.A. As the US government considers this policy shift, the impact on Venezuela's already struggling economy and the millions of Venezuelans displaced by economic hardship remains uncertain.

(With inputs from agencies.)