Venezuela’s Oil Exports Decline 11.5% Due to U.S. Tariffs and Sanctions
Venezuela’s oil exports dropped 11.5% in March due to U.S. tariffs and sanctions, leading to significant operational disruptions. A 25% tariff on Venezuelan oil, alongside revoked licenses for companies like Chevron, has halted cargo operations, particularly for buyers in China and India. This represents the lowest export levels since December 2023.
In March, Venezuela experienced an 11.5% decline in oil exports, attributed to U.S. tariffs and sanctions, as indicated by shipping data. The U.S. government implemented secondary tariffs and revoked crucial licenses necessary for operating in its energy sector, resulting in cargo delays and suspensions. These actions reflect the Trump administration’s strategy against Venezuelan oil, commencing with a new 25% tariff on buyers set to take effect shortly.
The termination of vital licenses permitted American companies, such as Chevron, to produce oil in Venezuela. Last year, the United States was Venezuela’s second-largest market for crude oil. The U.S. has imposed a deadline of May 27 for companies to cease operations and exports. This dramatic shift in policy has caused reliable buyers in countries like China and India to halt cargoes slated for late March and April loading.
According to shipping and internal data from PDVSA, 42 vessels departed from Venezuelan ports in March. These vessels transported an average of 804,677 barrels per day of crude and fuel, alongside 341,000 metric tons of oil byproducts and petrochemicals. Notably, export levels in March were 7.8% lower compared to the same month in 2024 and marked the lowest output since December 2023.
The decline in Venezuelan oil exports by 11.5% in March is a direct result of the U.S. tariffs and sanctions that have disrupted operations significantly. With a new 25% tariff and the cancellation of key licenses, foreign buyers have ceased cargo operations, leading to the lowest export levels recorded since December 2023. This situation underscores the profound impact of geopolitical decisions on national oil industries and global markets.
Original Source: www.tradingview.com
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