February Oil Exports Rise for Venezuela Amid Shipping Delays
Challenges in Oil Export for Venezuela
Venezuela saw a slight increase in oil exports in February, reaching around 670,000 barrels per day. However, ongoing shipping delays have worsened the situation, with tankers facing bottlenecks while waiting to load.
Increased Demand Amid Potential Sanctions
Customers of Venezuela’s state-run oil firm, PDVSA, rushed to send tankers to the country to pick up crude and fuel before potential reimposition of oil sanctions by the United States. With an existing license set to expire in April, PDVSA is struggling to meet delivery deadlines.
Export Trends and Challenges
Despite increased deliveries to clients like Chevron and Reliance Industries, Venezuela faced challenges due to weaker output and a shortage of diluents needed for exportable grades. This prevented PDVSA from significantly raising total exports.
Export Figures and Markets
In February, PDVSA and its joint ventures exported an average of 671,140 bpd of crude and fuel, mainly to Asia. However, challenges with flagship Merey 16 crude and diluent shortages hindered further export growth. Chevron’s shipments to the U.S. notably increased, while deliveries to Cuba and other Caribbean islands also saw slight rises.
Operational Improvements and Challenges
Despite recovery from power outages and slow oil blending at the Jose terminal, large tankers bound for Asia have left Venezuelan ports without loading after weeks of waiting. This has contributed to a backlog of tankers waiting near Venezuela’s main ports.
Forecast and Future Outlook
With operational improvements at the Jose terminal and potential higher exports in March, Venezuela aims to address the shipping delays and meet export demands. However, challenges persist, including a rise in fuel imports and ongoing logistical hurdles.
