Berliner Boersenzeitung - Joe Biden's perilous oil diplomacy

EUR -
AED 3.828153
AFN 73.09621
ALL 98.632835
AMD 412.913427
ANG 1.875355
AOA 950.519619
ARS 1066.510125
AUD 1.674841
AWG 1.876026
AZN 1.769687
BAM 1.957841
BBD 2.100991
BDT 124.349647
BGN 1.960478
BHD 0.392772
BIF 3077.0081
BMD 1.042237
BND 1.413974
BOB 7.190497
BRL 6.412836
BSD 1.040585
BTN 88.575349
BWP 14.452068
BYN 3.40535
BYR 20427.838141
BZD 2.093883
CAD 1.50204
CDF 2991.219654
CHF 0.937049
CLF 0.037361
CLP 1030.91829
CNY 7.606554
CNH 7.611376
COP 4580.630032
CRC 528.350861
CUC 1.042237
CUP 27.619271
CVE 110.380083
CZK 25.136043
DJF 185.226325
DKK 7.459851
DOP 63.386087
DZD 140.804896
EGP 52.925817
ERN 15.63355
ETB 132.491136
FJD 2.416582
FKP 0.825433
GBP 0.83195
GEL 2.928959
GGP 0.825433
GHS 15.295948
GIP 0.825433
GMD 75.040798
GNF 8993.376528
GTQ 8.015357
GYD 217.706982
HKD 8.095891
HNL 26.438565
HRK 7.475865
HTG 136.061859
HUF 411.125841
IDR 16879.022382
ILS 3.815123
IMP 0.825433
INR 89.333644
IQD 1363.121195
IRR 43865.131487
ISK 145.110697
JEP 0.825433
JMD 162.129036
JOD 0.739259
JPY 164.480057
KES 134.490102
KGS 90.674933
KHR 4182.360545
KMF 485.812523
KPW 938.012393
KRW 1530.743493
KWD 0.321197
KYD 0.867204
KZT 539.072039
LAK 22756.726248
LBP 93183.253209
LKR 306.679745
LRD 189.387456
LSL 19.348773
LTL 3.077454
LVL 0.630438
LYD 5.108326
MAD 10.493641
MDL 19.199017
MGA 4908.117221
MKD 61.61466
MMK 3385.143951
MNT 3541.519967
MOP 8.324479
MRU 41.539309
MUR 49.058192
MVR 16.054534
MWK 1804.381255
MXN 21.081039
MYR 4.658837
MZN 66.602808
NAD 19.348773
NGN 1612.16296
NIO 38.289921
NOK 11.869382
NPR 141.720759
NZD 1.852519
OMR 0.400913
PAB 1.040585
PEN 3.87484
PGK 4.223403
PHP 60.590944
PKR 289.695337
PLN 4.264846
PYG 8115.46121
QAR 3.784546
RON 4.975116
RSD 117.1675
RUB 103.979158
RWF 1451.613458
SAR 3.912974
SBD 8.737648
SCR 14.859192
SDG 626.903356
SEK 11.515209
SGD 1.416386
SHP 0.825433
SLE 23.772062
SLL 21855.184375
SOS 594.720057
SRD 36.538768
STD 21572.194177
SVC 9.105493
SYP 2618.651078
SZL 19.357182
THB 35.571315
TJS 11.383869
TMT 3.658251
TND 3.317959
TOP 2.441023
TRY 36.72807
TTD 7.071373
TWD 34.117097
TZS 2523.431069
UAH 43.63129
UGX 3808.971248
USD 1.042237
UYU 46.318292
UZS 13434.006345
VES 53.753711
VND 26509.288934
VUV 123.736421
WST 2.879478
XAF 656.641617
XAG 0.034976
XAU 0.000396
XCD 2.816697
XDR 0.797832
XOF 656.641617
XPF 119.331742
YER 260.949965
ZAR 19.653607
ZMK 9381.423458
ZMW 28.798025
ZWL 335.599773
  • RBGPF

    -0.7000

    59.8

    -1.17%

  • RELX

    -0.0300

    45.86

    -0.07%

  • SCS

    0.1700

    11.9

    +1.43%

  • CMSC

    -0.1100

    23.66

    -0.46%

  • GSK

    0.0900

    34.12

    +0.26%

  • BP

    0.0600

    28.85

    +0.21%

  • BTI

    0.1700

    36.43

    +0.47%

  • RIO

    0.0500

    59.25

    +0.08%

  • CMSD

    -0.1740

    23.476

    -0.74%

  • NGG

    0.0600

    58.92

    +0.1%

  • BCC

    -0.2600

    122.93

    -0.21%

  • RYCEF

    0.0000

    7.25

    0%

  • BCE

    -0.0300

    22.87

    -0.13%

  • JRI

    0.0500

    12.2

    +0.41%

  • VOD

    -0.0100

    8.42

    -0.12%

  • AZN

    0.2200

    66.52

    +0.33%

Joe Biden's perilous oil diplomacy
Joe Biden's perilous oil diplomacy

Joe Biden's perilous oil diplomacy

How far should Joe Biden go to limit soaring US gas prices? The US president has launched an oil diplomacy gambit to compensate for banning Russian petroleum, but he risks accusations of propping up authoritarian leaders and undermining his own battle for democracy.

Text size:

Amid the war unleashed by Russia in Ukraine, a recent American mission to energy-rich Caracas was intended to be discreet.

And for good reason: US government emissaries met with Venezuela's controversial leader Nicolas Maduro, a sworn enemy of Washington which disputes his legitimacy as president.

But news of the meeting leaked and the Biden administration was left scrambling to explain why it was engaging with an authoritarian regime.

Biden could certainly boast of a success, as Caracas on Tuesday released two Americans detained in Venezuela. But the trip clearly had other motives.

With the rise in crude prices brought on by the Ukraine war and Washington's decision to block all imports of Russian oil and gas, there is an urgent need to find other supply sources.

"What we are doing is going all around the world, working with partners and organizations and entities, to try to increase the amount of oil on the market" and stabilize prices, the State Department's number three diplomat, Victoria Nuland, said Tuesday.

There are just a handful of countries which produce the "heavy fuel" that Russia was exporting, "so frankly we've got to look everywhere that we can," she said, without ruling out that Washington could buy Venezuelan crude.

- Maduro 'piggy bank' -

The new posture is quite an about face for Washington, considering that since 2019 the US has imposed an oil embargo on the Latin American nation, which remains a close ally to Russia's Vladimir Putin.

In the short term, there is no assurance the visit changes the game.

The embargo remains in place and has caused "structural damage" to Venezuela's oil industry, former US diplomat Aaron David Miller told AFP.

Maduro, for his part, "is exploring the idea" of reciprocal concessions, but that "does not mean he is abandoning Putin," said Mariano de Alba, a Latin America advisor with the International Crisis Group.

Any mutual Washington-Caracas thaw would be a "long," uncertain and "very risky" process, he added.

The Biden administration in any case has been showered with criticism.

At a congressional hearing this week, Nuland was not only bludgeoned by opposition Republicans, she was not spared by some in the president's own Democratic camp.

Buying Venezuelan oil would have "an insignificant impact on the US economy," Republican Senator Marco Rubio told her. But "it would be millions of dollars for (Maduro's) personal piggy bank."

Bob Menendez, the lead Democrat on the Senate Foreign Relations Committee, was equally forceful: "The democratic aspirations of the Venezuelan people, much like the resolve and courage of the people of Ukraine, are worth more than a few thousand barrels of oil."

Miller, now an expert at the Carnegie Endowment for International Peace, believes if Washington is willing to risk such an outcry, it's because the administration "is trying to pursue any number of avenues."

Biden is "trying to balance the national interests on one hand, and then taking care of his narrower political interests on the other," Miller added.

It is a "tricky" ploy, because he is seeking to preserve "American values" while limiting rising inflation which is likely to "cost the president politically" in November's midterm elections, Miller said.

- Human rights -

The situation is all the more delicate given Biden's promise to put human rights at the center of a foreign policy that he now says is marked by a "battle between democracy and autocracy."

His top diplomat Antony Blinken said Wednesday that the United States could ensure "the stability of global energy supplies" without sacrificing its focus on human rights.

But each of Washington's steps has come under the microscope.

"It is imperative that we do not replace Russia's heavy crude with supplies from dictators in Iran and Venezuela," warned Republican Senator Jim Risch, noting the controversial negotiations to revive the Iran nuclear deal.

Above all, the US government is on the back foot in its ties with oil-rich Gulf monarchies.

The White House on Wednesday was forced to deny a Wall Street Journal report which said the crown princes of Saudi Arabia and the United Arab Emirates had declined to accept calls by the US president.

At the same time, news site Axios raised the prospect of a Biden trip to Riyadh in the spring in a bid to convince the kingdom to pump more oil.

"At a minimum he's going to have to talk with MBS," the Saudi Crown Prince Mohammed bin Salman, Miller said, even as Biden has so far refused to engage with the man he has accused of masterminding the murder of journalist and Riyadh critic Jamal Khashoggi.

Criticism, meanwhile, has emerged from the left wing of the president's camp.

"Our response to Putin's immoral war shouldn't be to strengthen our relationship with the Saudis," progressive congresswoman Ilhan Omar said on Twitter.

(B.Hartmann--BBZ)