US Authorizes Diluent Supply to Venezuela Oil Sector

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The U.S. Treasury Department has issued a new license authorizing the export and sale of U.S. diluents, a key fuel needed to produce exportable crude oil grades, to Venezuela. This is the second general license granted by the U.S. to ease sanctions on Venezuela following the capture of President Nicolas Maduro last month. The authorization supports the administration's policy of recovering Venezuela's oil sector and expressly allows processing of payments from Venezuela's government for the authorized transactions.

Why it matters

This move by the U.S. government signals a shift in policy towards Venezuela, as it aims to help revive the country's struggling oil industry which has been crippled by years of sanctions. The diluent supply is crucial for Venezuela to be able to produce and export crude oil, a key source of revenue for the country.

The details

The new license issued by the U.S. Treasury Department authorizes the export and sale of U.S. diluents, a type of fuel needed to dilute and process Venezuela's heavy crude oil into exportable grades. This is the second general license granted by the U.S. to ease sanctions on Venezuela, following a license issued last week that allowed U.S. companies to load, transport, store, sell and refine Venezuelan oil. The authorization expressly permits the processing of payments from Venezuela's government for these authorized transactions.

• The U.S. Treasury Department issued the new license on February 3, 2026.

What’s next

The new license is expected to help Venezuela's struggling oil industry by providing access to a crucial fuel needed for crude oil production and exports. However, the broader U.S. sanctions regime on Venezuela remains in place, and further policy changes would be needed to fully normalize economic relations between the two countries.