Rex Tillerson is talking about drastic action against one of the world's biggest oil producers — again

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February 5, 2018 7:36 PM

Cracking down on Venezuela's oil industry "is something we continue to consider," Rex Tillerson said this weekend.

Secretary of State Rex Tillerson suggested again the US could take action against Venezuela's oil industry.
Sanctioning oil would be a drastic move, and it is the latest hint by the US that it could further crack down on Venezuela.
Other countries in the region have been wary of US moves, and Tillerson's latest remarks drew rebuke in Venezuela.

Secretary of State Rex Tillerson again mentioned drastic action against the Venezuelan government this weekend, saying the US is considering restrictions on oil imports and exports to the South American country.

Calling the situation in Venezuela "quite dire," Tillerson added that the costs of imposing such sanctions needed to be balanced against the need to pressure Venezuelan President Nicolas Maduro.

Venezuela sits on the world's largest oil reserves and has long been a major supplier to the US, though its crude-oil sales to the US in 2017 were the lowest since 1991, according to Reuters, as it struggles under US financial sanctions and ongoing turmoil in its oil industry.

"One of the aspects of considering sanctioning oil is what effect will it have on the Venezuelan people, and is it a step that might bring this ... to a more rapid end?" Tillerson said in Buenos Aires. "Because not doing anything to bring this to an end is also asking the Venezuelan people to suffer for a much longer time."

Tillerson's counterpart, Argentine Foreign Minister Gorge Faurie, said it was "particularly important" to look at oil sales and the oil trade in relation to Venezuela.

"I assume the administration will not pursue this policy if it means gas prices go up, especially when the midterm elections are dicey already," Weeks added. "This will be a tricky game to play given its impact on US domestic politics."

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