Venezuela’s main oil ports entered a fifth straight day without shipping crude to customers in Asia, the country’s biggest buyers, as US pressure on the OPEC producer intensified under an oil embargo, shipping data showed.
The halt in deliveries risks worsening problems for state-run oil firm PDVSA, which is already struggling with output and refining constraints.
An extended export freeze to Asia could force PDVSA to deepen production cuts begun in recent days due to a build-up of crude and residual fuel stocks, Reuters reported.
While exports to Asia remained stalled, Chevron, PDVSA’s key joint-venture partner, resumed shipments of Venezuelan oil to the United States on Monday after a four-day pause.
The US major also recalled overseas staff to its Venezuela offices as flights restarted. Chevron has emerged as the only company currently exporting Venezuelan crude smoothly, according to Reuters.
Despite the embargo, at least a dozen sanctioned vessels that loaded crude and fuel in December left Venezuelan waters in early January carrying about 12 million barrels bound for China.
The tankers sailed in “dark mode” with transponders switched off, breaking a US tanker blockade imposed last month. Washington has not said whether those departures were authorised, Reuters said.
Separately, the administration of President Donald Trump is planning meetings this week with executives from US oil companies to discuss boosting Venezuela’s oil production after US forces arrested President Nicolas Maduro, sources told Reuters.
The White House said it believes US oil firms are ready to invest, though analysts caution that rebuilding output would take years and billions of dollars due to damaged infrastructure and political uncertainty.
Chevron remains the only American major operating in Venezuela, while Exxon Mobil and ConocoPhillips exited years ago following nationalisation.
Investors reacted positively, with US energy stocks rising sharply after the developments, Reuters reported.
The TOI Business Desk is a vigilant and dedicated team of journal...
Read MoreThe TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.
Read Less
Start a Conversation
Post comment