The United States is reportedly preparing to issue a general license that would ease sanctions on Venezuela's oil industry. This move signifies a potential shift in Washington's policy and could have significant implications for global oil markets and U.S.-Venezuela relations.

The planned authorization marks a departure from the previous approach of granting individual, case-by-case exemptions to companies seeking to operate in Venezuela's oil industry. U.S. officials have reportedly concluded that the increasing number of individual license requests has slowed down efforts to expand production, increase exports, and mobilize capital quickly. By issuing a general license, the U.S. government aims to remove bottlenecks and allow eligible companies to operate under a single, overarching authorization.

If issued, the broad license would underpin a proposed $2 billion oil supply deal between Washington and Caracas and support a sweeping $100 billion plan to rebuild Venezuela's oil sector, which has been crippled by years of sanctions, underinvestment, and mismanagement.

U.S. sanctions, particularly those imposed in 2019 targeting Venezuela's energy sector following President Nicolás Maduro's re-election, and a late-2025 blockade on sanctioned vessels, significantly reduced Venezuela's oil exports. Exports fell to approximately 500,000 barrels per day in December. While limited licenses granted to trading houses this month have helped reduce some accumulated inventories, millions of barrels remain in storage. A broader license could accelerate exports, stabilize production, and potentially reverse output cuts implemented earlier this year.

In recent weeks, numerous companies with ties to Venezuela's state oil firm, PDVSA, have sought individual U.S. licenses to expand operations. Among the applicants are major global companies such as Chevron, Repsol, and ENI, the Indian refiner Reliance Industries, and several U.S. oil service providers. The surge in applications has reportedly created delays within the U.S. government, hindering decisions that companies deem critical to restoring Venezuelan exports.

President Donald Trump, in a speech last week at the World Economic Forum in Davos, emphasized Venezuela's potential to boost oil revenues, saying the country is positioned to earn more from oil in the next six months than it has in the past two decades. Trump also praised Venezuela's interim authorities for swiftly agreeing to a cooperation deal with the United States.

The anticipated general license could enable a wider range of firms to re-engage with Venezuela's energy industry, with potential implications for global supply dynamics and the pricing of benchmark crude contracts. This move suggests a recalibration of the U.S. approach toward Venezuelan energy sector restrictions, though specific details and a timeline are yet to be formally announced.