Reported by: Joe Parkin Daniels in Bogotá and Felicia Schwartz in Washington

The US on Saturday authorised Chevron to resume oil production through its joint ventures in Venezuela, after the socialist government in Caracas and the opposition resumed political talks in Mexico City.

On Saturday, representatives of the Venezuelan government and the opposition returned to political negotiations in Mexico — suspended for more than a year — and signed a rare humanitarian agreement that seeks to free up Venezuelan funds frozen abroad for health, infrastructure and education. That fund, estimated to be around $3bn, will be administered by the United Nations.

Around the same time on Saturday, the US Treasury department announced it was easing oil sanctions.

On Saturday, a senior US administration official briefing reporters said the six-month licence would be subject to change if “the Maduro regime fails to negotiate in good faith or follow through on its commitments”.

Venezuela’s national oil company PDVSA will not receive profits from sales of oil under the agreement and revenues will be used to repay debt to Chevron. The official said Saturday’s move would shift some sales of Venezuelan oil off the black market “to transparent, legitimate channels.”

The official denied that the administration’s decision to allow Chevron to resume limited activities in Venezuela was influenced by global oil markets and said Saturday’s move would not significantly impact prices.

Read full report: https://www.ft.com/content/5bb62f19-a7c6-4e0d-9c6e-26fa50632cbb