In a notable development, Venezuela's oil exports reached a four-year peak in March, driven by a surge in customer purchases ahead of the looming expiration of a temporary U.S. license. The rise in exports comes amidst uncertainties surrounding potential reinstatement of full oil sanctions by the United States, scheduled to take effect when the current license expires on April 18.
Data from shipping sources and official documents indicate a significant uptick in Venezuela's oil exports, with state-run oil firm PDVSA witnessing the highest export levels since early 2020. Customers rushed to complete purchases, resulting in a total of 52 ships departing from Venezuela's ports last month, carrying an average of 884,935 barrels per day (bpd) of crude and refined products.
The surge in exports, representing a 32% increase from February, can be attributed to higher demand, favorable sale prices, and available inventories. Notably, cargoes to Asia, Venezuela's primary crude destination, witnessed a substantial rise, reaching almost 550,000 bpd in March.
Despite challenges posed by sanctions and operational constraints, Venezuela managed to bolster its petroleum exports, with PDVSA collaborating with various intermediaries to facilitate transactions. Furthermore, partnerships with international oil companies such as Chevron, Eni, and Repsol contributed to maintaining export volumes.
Chevron, operating joint ventures with PDVSA, continued to export Venezuelan crude to the United States under an individual license, while European oil companies increased their receipts of Venezuelan crude. Additionally, political ally Cuba remained a recipient of Venezuelan crude shipments.
In a notable development, PDVSA exported a cargo of Corocoro crude to its joint venture partner Eni, marking a revival of exports for this rare grade, which had been dormant since 2019 due to low output.
The surge in Venezuela's oil exports underscores the resilience of the country's oil industry amidst challenging geopolitical dynamics. As the expiration of the U.S. license approaches, Venezuela remains prepared to navigate potential challenges, ensuring continuity in its oil export activities.
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