US broadly authorizes transactions with Venezuela's oil company PDVSA

The Treasury's action is part of an attempt by the Trump administration to alleviate pressure on oil markets caused by the war with Iran.

"This license will benefit both the United States and Venezuela, while supporting the global energy market by increasing the supply of available oil. It will also help incentivize new investment in Venezuela's energy sector," a Treasury spokesperson said.

Venezuela has in recent weeks been exporting oil almost at top capacity, mostly through partner Chevron and global trading houses Vitol and Trafigura. March exports are forecast to reach pre-blockade levels of around 900,000 barrels per day, according to ship tracking data.

Analysts and oil executives have warned any additional output increase will require infrastructure repairs, oil and gas project expansions and new supply agreements and partnerships, which have been under negotiation between foreign firms and PDVSA in recent months.

"The reality is, Venezuela doesn't have the infrastructure, it's not like it has the ability to just start ramping up output of oil," said Brett Erickson, a managing principal at Obsidian Risk Advisors.