One of the biggest challenges facing the Biden administration is inflation with the most noticeable being the rising price of gasoline and energy. In some ways, the administration is partially responsible given stricter limits on domestic energy production, but overall, it's due to circumstances outside of its control such as the pandemic, caution among oil producers, and Russia's invasion of Ukraine.
Another compilation is the increasingly tense relationship with Saudi Arabia which was ratcheted even higher as OPEC+ decided to reduce its production by 2 million barrels per day. In retaliation, the Biden administration and Congress are reportedly looking to reevaluate the relationship between the two countries.
Another avenue that the administration is reportedly pursuing is to ease sanctions on countries like Iran and Venezuela in exchange for some concessions which would also increase supply. There were strong rumors of negotiations between the U.S. and Iran, but those have been put on pause due to the brutal crackdown in Iran on protesters.
However, there are reports that the administration is willing to change policy towards Venezuela, including the creation of a humanitarian program to assist Venezuelan migrants and the easing of oil sanctions.
However, this would upend decades of U.S. policy which has opposed the regime of President Hugo Chavez and his successor, Nicolas Maduro. Both are not seen as legitimate rulers by the U.S. given accusations of unfair and rigged elections, while the country has cultivated ties with U.S. adversaries like Russia and China.
The sanctions would give Chevron
However, there remains a great deal of uncertainty about whether a deal can actually be reached. Secretary of State Blinken said that "We will review our sanctions policies in response to constructive steps from the regime." For the U.S., the challenge is continuing to contest the legitimacy of the ruling regime or making a deal that implicitly acknowledges its validity.
