After allegations of widespread fraud in Venezuela’s recent election, US presidential candidates will be forced to take a stance on the issue.

• The previous Trump administration took a very hawkish view on Venezuela, imposing draconian sanctions which cut Caracas’ exports to as low as 300k b/d, Platts said.
• Trump’s line of attack could be that VP Kamala Harris is soft on sanctions. This may force her into taking a tougher stance.
• Consequently, it difficult to predict what Harris will do.
• The obvious step would be repealing General License 44A allowing companies like ENI and Repsol to invest in upstream.
• The extreme step would be repealing general license 41 allowing Chevron to produce its crude and invest in upstream. This would have a major impact on Venezuela’s production.
• Gasoline prices are always a big issue during US elections and any impact will be carefully considered in potential policy decisions, Platts added.