Venezuela’s crude oil and fuel exports fell 11.5% in March due to new U.S. tariffs and revoked operating licenses. The U.S. imposed a 25% tariff and has impacted key partners like Chevron. Exports to Asia declined, while alternative strategies may emerge for meeting demand despite sanctions.

Venezuela has experienced an 11.5% decline in crude oil and fuel exports in March, due to the United States imposing secondary tariffs and cancelling significant operating licenses within its U.S.-sanctioned energy sector. The reduction in shipments has been substantiated by ship tracking data and internal documents from PDVSA, the state-run oil company.

Recently, the Trump administration announced a 25% tariff on buyers of Venezuelan crude and gas, effective immediately. Foreign partners of PDVSA were informed that their previously granted authorizations for operations and exports would be revoked. This announcement followed the suspension of a key license for Chevron to produce and export oil from Venezuela to the U.S., which was one of the largest markets for Venezuelan crude.

In March 2023, a total of 42 vessels departed Venezuelan ports, transporting 804,677 barrels per day of crude and fuel, along with 341,000 metric tons of oil byproducts. This figure represents a 7.8% decrease compared to the same month in 2024 and marks the lowest export levels since December 2022. The bulk of crude exports was directed towards China, followed by the U.S., India, and Cuba, with no shipments to Europe recorded for the month.

Additionally, two vessels left Venezuelan waters without loading due to escalating pressure from the Trump administration. As a result of these pressures, various tankers are accumulating near Venezuelan ports, as both customers and shipping companies await clarification on the enforcement of the new tariffs. Current satellite imagery indicates that over 80 vessels remain in or near Venezuelan waters, with 35 vessels loaded yet unresponsive.

If these U.S. measures persist, experts predict that Venezuela will suffer a significant blow to its primary revenue source. This situation echoes the impact of secondary energy sanctions imposed by the U.S. in 2020. Nevertheless, there may be potential for Venezuela to redirect its crude shipments towards Asian markets via intermediary nations and trans-shipments, as has been employed by other sanctioned oil producers recently.

In summary, Venezuela’s oil exports are facing severe challenges due to new U.S. tariffs and the revocation of operational licenses. With decreasing volumes and the suspension of key shipments, the country may experience a significant hit to its revenue. However, potential alternative strategies involving trans-shipments to Asian markets may offer a silver lining for Venezuela amid strict sanctions.

Original Source: www.marinelink.com

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