Following Maduro’s ouster, Venezuelans pin hopes on US oil talks to revive the crippled economy, with analysts forecasting potential growth and investment.
CARACAS: Venezuelans are hoping talks to sell the country’s oil to the United States will improve dire economic fortunes following the US raid that deposed leader Nicolas Maduro (pic).
Analysts agree the operation has radically changed the country’s economic outlook and expectations.
Interim leader Delcy Rodriguez has pledged to cooperate with Washington on oil while insisting Venezuela is not “subordinate”.
Maduro’s government had previously resorted to cryptocurrencies amid a lack of investment and runaway inflation.
“I don’t really understand those agreements signed by Trump and Delcy, but I hope they help improve the economy,” said teacher Marieta Ochoa, 47.
Rapprochement could mean easing sanctions, restoring oil exports and reviving cash flows, according to Alejandro Grisanti of Ecoanalitica.
State oil company PDVSA is negotiating crude sales with Washington under schemes similar to those applying to firms like Chevron.
Former US president Donald Trump signed an order to safeguard Venezuelan oil revenue held in US accounts.
He has also urged US oil firms to invest in Venezuela and restore its creaky oil infrastructure.
Analysts say Rodriguez could attract investment if she signals openness and flexibility.
“The country urgently needs a growing and stable cash flow, and oil can provide it immediately,” said economist Carlos Torrealba Rangel.
Growth prospects are strong since oil accounts for 87% of Venezuela’s foreign currency earnings.
Economist Asdrubal Oliveros forecast “a 30% expansion — double the rate of the past two years.”
“Increased oil income from higher output and reduced discounts will boost cash flows,” he said.
Traders said economic activity was timidly looking up after the US airstrikes that led to Maduro’s capture.
“Little by little, the economy is reactivating,” said Carmen Alvarez, who represents informal traders.
Analysts warned however that Venezuela’s economy remains fragile in the short term.
“Venezuela is on the brink of hyperinflation,” said economist and former central bank head Jose Guerra.
Oxford professor Jose Manuel Puente said easing sanctions would improve expectations and attract investment.
He warned recovery wouldn’t be easy and that the oil industry needs $100 billion annually to restart.
“The year 2026 began with an unprecedented shift in Venezuela’s policy that will reshape economic dynamics,” said Oliveros.
