Venezuela is enhancing oil exports to China, reaching 400,000 barrels daily as U.S. sanctions tighten. The Trump administration’s tariffs and Chevron’s exit add pressure. Despite sanctions, China continues purchasing Venezuelan oil employing methods to avoid detection, while criminal activities under Maduro are blamed for rising illegal immigration to the U.S.

Venezuela is markedly increasing its oil exports to China, projected to reach 400,000 barrels per day this month, the highest volume since June 2023. This surge comes as the Trump administration intensifies sanctions and secondary tariffs against the Latin American nation. China remains a significant market, historically purchasing discounted oil from nations under sanctions, including Venezuela, Iran, and Russia.

The Venezuelan oil sector faces unprecedented challenges, especially since the Trump administration prohibited U.S. oil imports from Venezuela in 2019. Currently, President Trump is imposing 25% tariffs on all U.S. goods imported from countries purchasing Venezuelan oil and has revoked Chevron Corp.’s license to operate in Venezuela, mandating the company to exit the country by May 27.

Notably, China has consistently bought Venezuelan oil despite ongoing U.S. sanctions over the past six years. The state oil company, Petroleos de Venezuela, employs lesser-known intermediary companies to navigate around U.S. scrutiny, employing tactics such as fake documents and vessel location spoofing. Recently, in March, a minimum of ten untraceable ghost ships were utilized to transport oil towards Asia and Cuba.

The U.S. administration holds Venezuelan President Nicolas Maduro’s government accountable for the escalation of criminal activities in the nation, which it implicates in worsening illegal immigration issues to the United States.

In conclusion, Venezuela’s oil exports to China are set to rise significantly as the nation grapples with increasing U.S. sanctions and tariffs. Despite the challenges, China remains a key importer of Venezuelan oil, employing various tactics to circumvent detection. The situation underscores the complexities of international oil trade amidst geopolitical tensions.

Original Source: www.business-standard.com

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