Venezuela’s oil exports held steady in May as rising shipments to China offset a drop in U.S.-authorized sales, according to vessel-tracking data and internal documents from state oil company PDVSA.
The stabilization came after the U.S. Treasury and State departments revoked licenses in March that had allowed customers and partners to export oil from the sanctioned country, giving firms until May 27 to wind down transactions.
The license expirations and PDVSA’s cancellation of some cargoes to Chevron due to payment issues reduced deliveries to long-standing customers in the United States and Europe. However, intermediaries increased the volume of oil shipped to China, maintaining overall export levels.
The Biden administration has kept pressure on Venezuela, citing a lack of progress on electoral reforms and migrant repatriation. Venezuela has denounced the sanctions as part of an “economic war.” U.S. energy sanctions imposed since 2019 require companies to obtain authorization to trade Venezuelan oil or engage with PDVSA.
In May, 30 vessels left Venezuelan ports carrying an average of 779,000 barrels per day of crude and refined products, along with 291,000 metric tons of oil byproducts and petrochemicals. That compares to 783,000 barrels per day in April, when U.S.-authorized sales began to decline from previous levels of 850,000 to 900,000 barrels per day.
China was Venezuela’s top oil buyer in May, receiving about 584,000 barrels per day, up from 521,000 in April. The U.S. took in around 140,000 barrels per day, slightly higher than the 130,000 barrels per day the month before.
PDVSA delivered no cargoes to Chevron or India’s Reliance Industries, but it completed a large swap deal with Maurel & Prom and Vitol, marking the final U.S.-authorized transaction before license expiration.
PDVSA also began exporting Boscan heavy crude to Asia, a grade it had previously shipped to the U.S. under its joint venture with Chevron. While PDVSA and Reliance did not comment, Chevron confirmed its license had expired and said it remained compliant with U.S. sanctions.
Venezuela boosted fuel imports in May to 159,000 barrels per day from 94,000 in April to rebuild supplies of heavy naphtha, used to dilute its extra heavy crude ahead of new sanctions enforcement.
