Venezuela’s oil and America’s new leverage
Business
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Moneycontrol11-01-2026, 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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