Venezuela Turns To Asia As Sanctions Cut Oil Flow To U.S., Europe | 2/11/2019 | Staff
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HOUSTON/MEXICO CITY/MOSCOW(Reuters) – Venezuela’s oil exports have tapered off and shifted toward Asia since new U.S. sanctions began Jan. 28 as state-run oil company PDVSA seeks to replace deliveries to the United States and Europe that were disrupted by payment restrictions.

The South American nation is turning its focus to cash-paying buyers in Asia and to double its sales primarily in India, its second largest customer after the United States, amid U.S. sanctions designed to undercut financial support for Venezuelan President Nicolas Maduro. Sanctions are designed to bar Maduro’s access to oil revenue that has helped his government remain in power.

Weeks - Sanctions - PDVSA - Barrels - Day

In the two weeks since the sanctions were announced, PDVSA has been able to load and export 1.15 million barrels per day (bpd) of crude and refined products, according to Refinitiv Eikon data. Venezuela was exporting about 1.4 million bpd in the months before sanctions, according to the Eikon data.

Two supertankers, Baghdad and Folegandros I, launched late on Monday from Venezuela’s Jose terminal carrying cargoes to Indian ports, becoming the latest Asia-bound vessels to steam past a flotilla of tankers whose deliveries were disrupted by the sanctions and have remained anchored in the Gulf of Mexico and off Venezuelan ports.

Tankers - Barrels - Venezuelan - Crude - Fuel

At least 19 Asia-bound large tankers carrying more than 24 million barrels of Venezuelan crude and fuel were en route on Monday to India, China, Singapore, Malaysia and Japan. Nine of the vessels exported oil after the sanctions were issued.

“They are looking for another outlet,” one U.S. shipbroker said of the focus on Asia.

Sanctions - PDVSA - Bpd - United - States

Before the sanctions, PDVSA shipped over 500,000 bpd to the United States, its largest cash market, followed by India then China, at above and below 300,000 bpd respectively.

Venezuela has sent its oil minister, Manuel Quevedo, to India to convince refiners, including Reliance Industries Ltd and Nayara Energy Ltd ,...
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