• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 5 days The United States produced more crude oil than any nation, at any time.
  • 10 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 6 days How Far Have We Really Gotten With Alternative Energy
  • 11 days e-truck insanity
  • 9 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 9 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 11 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 11 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)

China Cuts Back on Venezuela Oil Purchases After U.S. Sanctions Relief

Chinese independent refiners, the biggest customers of Venezuela’s crude before the U.S. sanctions relief, are now holding back fresh purchases of oil from the Latin American country due to unpredictable discounts on cargoes after international majors returned to Venezuelan trades, trading sources in China have told Reuters.

China and its independent refiners were buying Venezuelan crude even under the U.S. sanctions, providing an outlet to Venezuela’s oil. But now the trades with crude from the country holding the world’s largest reserves are in “disarray” and discounts cannot be predicted, the sources told Reuters.

Chinese refiners are also reducing Venezuelan oil intake because of a seasonal drop in demand for asphalt, for which Venezuela’s heavy crude is suited.

Before the U.S. eased the sanctions on Venezuela, Chevron was the only Western major with a special exemption from late 2022 to operate in Venezuela and export crude from the country holding the world’s largest crude oil reserves.    

The easing of the sanctions now allows the production, lifting, sale, and exportation of oil or gas from Venezuela, and the provision of related goods and services, as well as payment of invoices for goods or services related to oil or gas sector operations in Venezuela.

As a result, the top international oil trading houses are back in the business of trading with oil from Venezuela.

Some of the largest independent oil trading houses are already offering Venezuelan cargoes, including to U.S. buyers. Commodity giants have also struck deals to buy crude from intermediaries approved by Venezuela’s state-owned oil company PDVSA.  

Vitol Group, the world’s largest independent oil trader, has hired a supertanker to load oil from Venezuela, lists of ship charters compiled by Bloomberg showed last week.  


Meanwhile, Venezuelan Oil Ministry officials said on Wednesday that output had reached 850,000 barrels per day (bpd) after the easing of the sanctions. Analysts, however, don’t see Venezuela having the ability to raise production too much in the near term. Venezuelan oil production is unlikely to jump above 900,000 bpd by the end of 2024, according to the U.S. Energy Information Administration (EIA).   

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment
  • Mamdouh Salameh on November 23 2023 said:
    Before the easing of US sanctions against
    Venezuela, China’s objectives were to defy US sanctions, buy Venezuelan oil to help Venezuelan finances and to be paid in oil shipments for the billions of dollars it has lent Venezuela over past years and to help raise Venezuelan production and exports.

    But with the easing of the sanctions, China realizes that Venezuela has more opportunities to sell its oil freely in the market and Chinese buyers could shop around for cheaper oil purchases around the world.

    Dr Mamdouh G Salameh
    International Oil Economist
    Global Energy Expert

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News