US Gains Strategic Leverage: Venezuela's Oil Becomes Key in China Power Play

Business
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Moneycontrol•11-01-2026, 07:07
US Gains Strategic Leverage: Venezuela's Oil Becomes Key in China Power Play
- •The US is asserting control over Venezuela's heavy crude oil flows, impacting global energy markets and the US-China power dynamic.
- •Venezuelan heavy crude is crucial for industrial fuels like diesel, jet fuel, and asphalt, which China's refining system heavily relies on.
- •By disrupting access to this specific crude, the US forces China to face higher costs and less efficient alternatives, impacting its infrastructure and logistics.
- •Oil is not fungible; control over specific grades like heavy crude translates into significant negotiating power, especially against China's energy import dependency.
- •This leverage strengthens Washington's position in broader discussions with Beijing, from trade to technology transfer, without aggressive action.
Why It Matters: US control over Venezuela's heavy oil gives it significant strategic leverage against China, impacting global power dynamics.
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