In an update, the US Treasury’s Office of Foreign Assets Control (OFAC) said that it has added Venezuela’s President Maduro to its Specially Designated Nationals (SDN) list. This means that any US-based assets of his have been frozen, and American citizens are forbidden from conducting any business with him. The move came after Maduro won the country’s election dogged by protests and very low turnout. US treasury called the election held in the country on Sunday as illegitimate.

The update from the Treasury department reads as “The following individual has been added to OFAC's SDN List:

MADURO MOROS, Nicolas (Latin: MADURO MOROS, Nicolás), Caracas, Capital District, Venezuela; DOB 23 Nov 1962; POB Caracas, Venezuela; citizen Venezuela; Gender Male; Cedula No. 5892464 (Venezuela); President of the Bolivarian Republic of Venezuela (individual) [VENEZUELA].”

The US treasury secretary Steven Mnuchin said, “Yesterday’s illegitimate elections confirm that Maduro is a dictator who disregards the will of the Venezuelan people…….By sanctioning Maduro, the United States makes clear our opposition to the policies of his regime and our support for the people of Venezuela who seek to return their country to a full and prosperous democracy.” Ahead of the vote, the US Treasury had already slapped sanctions on 13 senior Venezuelan officials.

After the move was announced, Maduro lashed out at the US President Donald Trump by saying, “"Keep up your sanctions, Donald Trump!.....I am proud of the alleged sanctions... because I do not wag my tail like a lying dog….I am punished for defending the natural resources of Venezuelan lands…..I am the independent president of a free nation……You're with Trump or Venezuela, you're with Trump or with democracy, you're with Trump or the free world."

Nevertheless, it is a major relief for the oil bears as it was feared that the United States might impose sanctions against Venezuela’s crude oil exports, which would have been very bullish for the oil price, which is currently trading at $52.4 per barrel (Brent).