Venezuela, the South American nation known for its vast oil reserves, is witnessing a significant turning point in its oil export activity...
Shipping data and documents from Venezuela’s state oil company PDVSA show that the country’s oil exports rose by 14% to 1.23 million barrels per day in April, the highest level in more than seven years. This acceleration was driven by increased shipments to markets in the United States, India, and Europe, according to Reuters.
In recent months, Venezuela’s oil inventories have declined rapidly, while crude production has rebounded strongly following a U.S.-led campaign that led to the overthrow of President Nicolas Maduro earlier this January.
After Maduro was captured by U.S. forces and extradited to the United States, Washington reached a key oil supply agreement with the interim Venezuelan administration led by President Delcy Rodríguez.
This agreement, along with U.S. authorization to ease sanctions on Venezuela this year, has allowed PDVSA’s joint venture partners and trading firms such as Vitol and Trafigura to lift cargoes from PDVSA and sell them to refineries in the U.S., Europe, and Asia.
In April, a total of 66 tankers departed Venezuelan waters, compared to 61 vessels that transported 1.08 million barrels per day of crude and refined products in March. April’s export volume marks the highest monthly level since late 2018, before U.S. sanctions were imposed on Venezuela’s energy sector.
The United States was the top destination for Venezuelan oil last month, receiving about 445,000 barrels per day, up from 363,000 barrels per day in March. Exports to India rose to 374,000 barrels per day from 342,000, while shipments to Europe increased to around 165,000 barrels per day, up from 144,000.
Also in April, approximately 187,000 barrels per day of Venezuelan crude and fuel were sent to storage hubs in the Caribbean for onward sales.
Trading companies accounted for about 56% of Venezuela’s total oil exports in April, equivalent to 691,000 barrels per day, while U.S. oil major Chevron was responsible for 25%, or 308,000 barrels per day, up from 267,000 in March.
India’s Reliance Industries received a large direct crude shipment from PDVSA and also purchased additional Venezuelan cargoes from trading firms during April.
Under the oil supply agreement between Venezuela and the United States, Venezuelan exports have become more diversified, reaching a broader customer base in recent months - marking a significant shift from the constraints imposed by previous U.S. sanctions.
For its part, the United States continues to control Venezuela’s oil export revenues - Venezuela being a member of OPEC through accounts monitored by the U.S. Treasury.
Supply to India’s Reliance is expected to grow further in May, with at least three supertankers chartered by the company currently waiting to load at Venezuelan ports.
Venezuela also exported 360,000 tons of byproducts and petrochemicals in April, slightly down from 382,000 tons the previous month, while importing about 141,000 barrels per day of naphtha, compared to 155,000 barrels per day in March.
