A Venezuelan embargo on oil exports to the US would lead to an immediate 15 per cent surge in world oil prices and crimp economic growth in the short term, according to a US congressional investigation.
The study by the Government Accountability Office, CongressÂ’s non-partisan investigative agency, obtained by the Financial Times before its release this month, warns that the US is inadequately prepared for a potential loss of oil from Venezuela. The investigation was requested 18 months ago by Senator Richard Lugar, Republican chairman of the Senate foreign relations committee, reflecting growing concerns about the reliability of Venezuelan oil supplies.
Mr Lugar, who has described energy as a national security issue, introduced legislation in March that called on the US to expand its international co-operation on energy issues. The findings are likely to embolden his efforts. |