Venezuela’s oil exports fell sharply in April, dropping nearly 20% to around 700,000 barrels per day (bpd)-the lowest monthly figure recorded in the past nine months.
This sudden decline happened after the state-owned oil company PDVSA cancelled several cargoes assigned to US oil giant Chevron, forcing ships to turn back and leaving some loading ports inactive.
According to vessel tracking data from LSEG and internal documents, a total of 32 ships left Venezuelan waters last month.
These vessels carried an average of 698,767 bpd of crude oil and fuel, along with 357,000 metric tons of oil byproducts and petrochemicals.
The cut in exports followed PDVSA’s decision in early April to suspend most loading slots previously granted to Chevron. The company also recalled some shipments already headed for the United States.
Chevron’s oil exports from Venezuela to the U.S. dropped sharply in April, falling 69% to just 66,000 barrels per day, after the company halted shipments earlier than required.
This move comes even though Chevron’s U.S. license to operate in Venezuela is still valid until May 27. The early stop was due to growing concerns over U.S. sanctions and payment risks.
The U.S. Treasury has ordered all companies to halt oil operations and exports from Venezuela by May 27.
Venezuela has been under heavy sanctions since 2019, making it difficult for foreign companies to do business there. Recently, the U.S. also began targeting other countries buying Venezuelan oil.
Despite Chevron’s pullback, other international companies increased their purchases of Venezuelan oil before the deadline. These included France’s Maurel & Prom, Global Oil Terminals from the U.S., and India’s Reliance Industries.
Venezuela also increased its imports of heavy naphtha, a chemical used to dilute thick crude oil, to help its oil flow better for export. These imports increased from 82,000 to 94,000 barrels per day in April.
Meanwhile, Venezuela’s state oil company PDVSA paused operations at the Petropiar crude upgrader, a joint project with Chevron, between late March and early April to boost refining within the country.
PDVSA also introduced a new type of crude oil called “Blend 22” in April, and its first shipment went to the U.S., despite rising tensions with Washington.
In April, China was the biggest buyer of Venezuelan oil, importing around 428,000 barrels per day. The U.S. followed with 138,000 barrels per day, and India with about 64,200 barrels per day.
Venezuela’s Oil Minister Delcy Rodríguez visited China last month to strengthen oil trade ties as the country looks to work more with non-U.S. partners.
Analysts believe Venezuela’s oil exports may drop even more in the coming months.
The U.S. has already pulled licenses from other companies like Maurel & Prom, and firms like Eni and Repsol may no longer be allowed to accept Venezuelan oil to repay old debts.
The Venezuelan government continues to criticise the U.S. sanctions, calling them part of an “economic war” against the country.
Reference: Reuters, Oil Price
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