The US is reportedly preparing to relax sanctions on Venezuela to let Chevron pump oil there, as hostilities with OPEC+ build

The Wall Street Journal reported on Wednesday that the White House is considering relaxing some sanctions on Venezuela in order for Chevron to increase production there.

The news is related to the Biden administration's strong response to the OPEC+ decision not to cut output.

The WSJ reported that the proposed deal would allow US oil companies to operate in Venezuela again.

Despite a push by the Biden administration, the Organization of the Petroleum Exporting Countries agreed to cut oil production by 2 million barrels a day from November. The decision was seen as a blow against the president by analysts.

The White House is worried that the cuts could cause gas prices to go up in the US and give Russia a boost. CNN reported that one US official said the administration was having a spasm and panicking.

The White House said that it was clear that the group was aligning with Russia. The White House didn't reply immediately.

In recent months, crude prices have trended lower due to worries that a global recession could hit demand for oil.

West Texas Intermediate crude futures were slightly lower than the international benchmark price early Thursday.

OANDA analyst Craig Erlam told Insider that it is not clear how much oil will enter the market if the deal goes through.

He pointed to a US effort to limit the price of Russian oil and oil products.

At a time when a price cap on Russian crude threatens its output levels, a deal could give some relief in the market.

According to the WSJ, the proposed deal between the US and Venezuela would ease the sanctions in exchange for political concessions from the government of Nicols Maduro. Talks about free and fair presidential elections were suspended by his regime.

The deal could fall through if the government doesn't follow through.

The White House doesn't plan to change its policy on sanctions against Venezuela without constructive steps by the country's regime.

The sanctions policy on Venezuela is still in place. The National Security Council will continue to implement and enforce the Venezuela sanctions.

The talks between the US and Venezuela on easing sanctions have been going on since the beginning of the year. On March 5, both countries held their first high-level bilateral talks in a long time.