Venezuela's Oil Revival: A Surge in Shipments to China

According to a recent report from Reuters, Venezuela’s crude and fuel exports saw a notable uptick in June, reaching approximately 844,000 barrels per day (bpd). This marks an 8% rise compared to May, as the country shifted its focus towards China following the loss of access to U.S. and European markets. The change came after Washington revoked licenses that allowed companies like Chevron and Repsol to transport Venezuelan oil to refineries in those regions.

In response to these challenges, Venezuela has increased its shipments to Asia by utilizing lesser-known intermediaries that negotiate with independent Chinese refiners. Notably, Boscan heavy crude—previously sent by Chevron to the U.S.—has found new buyers in Asia thru this strategy.

During June alone, 27 tankers left Venezuelan ports carrying an average of 844,000 bpd of crude along with refined products and around 233,000 metric tons of petrochemicals.For context, oil exports averaged about 779,000 bpd in May alongside shipments of roughly 329,000 metric tons of byproducts.

The data indicates that nearly all (90%) of June’s exports were directed towards China or routed through trans-shipment hubs—a important increase from May’s figure of about 75%. Additionally, PDVSA managed some smaller shipments: around 8,000 bpd went to Cuba while methanol and petroleum coke found their way into Europe and India.

A key factor behind this export surge was the increased sales volume for Boscan crude; three cargoes specifically targeted asphalt production needs in Asia. These sales are crucial for PDVSA as they help maintain operations at the Boscan oilfield—one of Venezuela’s largest production sites—without necessitating output reductions.

interestingly enough,despite these export gains following license cancellations from washington at the end of May—which had previously restricted imports—the state-owned company did not bring any diluents into the country during June as it had stocked up on refined products beforehand.while geopolitical shifts have posed challenges for Venezuela’s oil industry over recent months—notably regarding conventional markets—the pivot towards Asian buyers appears promising for sustaining export levels moving forward.