The share price of Tipco Asphalt Public Company Limited (SET: TASCO) is at risk of trading lower following the report of the U.S. not extending a license to allow oil export.
The share price of TASCO went on a 10-day winning streak for a 15% gain in October 2023 after US authority granted reoperations of businesses in Venezuela. Now the trend could reverse if the sanction is back in place.
The Biden administration has announced its decision not to extend a license, set to expire soon, that had provided broad relief on Venezuela oil sanctions. This move comes in response to President Nicolas Maduro’s failure to fulfill his election promises. The U.S. Treasury Department revealed a replacement license, granting companies 45 days to conclude their operations and transactions in Venezuela’s oil and gas sector.
The threat of reinstating energy sanctions had loomed as Washington demanded Maduro to fulfill the obligations that resulted in partial alleviation of U.S. sanctions from October. These concessions stemmed from an election deal brokered with the Venezuelan opposition, with the conditions not being fully met by Maduro as confirmed by senior U.S. officials.
The earlier imposition of sweeping sanctions on Venezuela’s oil industry had been initiated by the Trump administration in 2019 following Maduro’s re-election, which was disputed by the U.S. and other Western nations. Despite Maduro meeting some commitments outlined in last year’s agreement, he has failed to fulfill others, such as permitting the opposition to field its candidate in the upcoming presidential election on July 28.
State Department spokesperson Matthew Miller mentioned that the current six-month general license would expire without renewal shortly after midnight EDT.
Jorge Rodriguez, the leader of Venezuela’s government-aligned legislative body, asserted that Caracas had fulfilled the requirements of last year’s agreement. He criticized the reinstatement of sanctions as detrimental to Venezuela during a press briefing on Wednesday. The decision to revoke the primary aspect of U.S. sanctions relief signifies a significant regression from President Joe Biden’s efforts to re-establish ties with the Maduro administration.
Despite this action, the Biden government is not reverting entirely to the “maximum pressure” strategy adopted by former President Donald Trump. A U.S. official clarified that this step should not be interpreted as a definitive stance indicating a lack of belief in Venezuela’s capacity to conduct fair and inclusive elections. The official mentioned that Washington would remain engaged with representatives from Maduro’s government.
