403
Sorry!!
Error! We're sorry, but the page you were looking for doesn't exist.
Fitch Ratings Sees Limited Effect After US Move in Venezuela
(MENAFN) Fitch Ratings announced on Tuesday that Washington’s recent measures in Venezuela have had only a modest influence on oil producers across North America.
"Recent U.S. involvement in Venezuela could ultimately support oil production growth in the country and benefit U.S. exploration and production (E&P) companies should they result in policy shifts that enable increased foreign participation in the sector," the global credit evaluation firm stated.
Still, the agency cautioned that substantial progress would demand significant financial commitments and patience. Incentives for investment remain scarce in a global market currently marked by oversupply.
The report underscored that U.S. actions in Venezuela have so far produced minimal consequences for North American energy companies. It noted that Canadian crude exports might encounter pricing challenges in an unlikely scenario—such as a sudden surge in Venezuelan oil output. Even then, the effect on credit ratings would be minor, given the strong resilience of Canadian operators.
The agency further stressed that American refineries, especially those with advanced processing capabilities, stand to gain from these developments.
It suggested that U.S. involvement in Venezuela could expand future production capacity by granting firms access to the nation’s extensive reserves and opportunities to invest in rebuilding infrastructure.
In the longer term, this could lower input costs and enhance refinery profit margins.
On Sunday, U.S. President Donald Trump declared that the United States is “in charge” of Venezuela after an operation led to the detention of Maduro and his spouse Cilia Flores. They were transported by American forces to New York, where they entered pleas of not guilty to charges connected with narcotics and weapons.
"Recent U.S. involvement in Venezuela could ultimately support oil production growth in the country and benefit U.S. exploration and production (E&P) companies should they result in policy shifts that enable increased foreign participation in the sector," the global credit evaluation firm stated.
Still, the agency cautioned that substantial progress would demand significant financial commitments and patience. Incentives for investment remain scarce in a global market currently marked by oversupply.
The report underscored that U.S. actions in Venezuela have so far produced minimal consequences for North American energy companies. It noted that Canadian crude exports might encounter pricing challenges in an unlikely scenario—such as a sudden surge in Venezuelan oil output. Even then, the effect on credit ratings would be minor, given the strong resilience of Canadian operators.
The agency further stressed that American refineries, especially those with advanced processing capabilities, stand to gain from these developments.
It suggested that U.S. involvement in Venezuela could expand future production capacity by granting firms access to the nation’s extensive reserves and opportunities to invest in rebuilding infrastructure.
In the longer term, this could lower input costs and enhance refinery profit margins.
On Sunday, U.S. President Donald Trump declared that the United States is “in charge” of Venezuela after an operation led to the detention of Maduro and his spouse Cilia Flores. They were transported by American forces to New York, where they entered pleas of not guilty to charges connected with narcotics and weapons.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Most popular stories
Market Research
More Story
Comments
No comment