Venezuela’s oil exports surged in March to the highest level since early 2020 as customers hurried to finalize purchases before the likely expiration of a temporary U.S. license permitting the country to freely sell its crude, according to shipping data and official documents. State-run oil firm PDVSA has expressed readiness for any potential outcomes, including the potential reinstatement of full oil sanctions when the current license expires on April 18.
Washington has hinted at the possibility of reimposing oil sanctions prior to Venezuelan presidential elections later this year, which many nations have criticized for lacking competitive voting practices. Concerns over the license’s renewal have prompted customers and tanker owners to secure Venezuela-origin cargoes since February, resulting in a congestion of vessels near Venezuelan ports, as indicated by LSEG shipping data. Despite delays causing some ships to depart without loading, a total of 52 vessels left Venezuela’s ports last month, carrying an average of 884,935 barrels per day (bpd) of crude and refined products, along with 463,000 metric tons of oil byproducts and petrochemicals. PDVSA and its joint ventures overcame previous export challenges to achieve a 32% increase in petroleum exports last month, reaching levels not seen in recent years. The boost in exports was attributed to heightened demand, stronger sale prices, and available inventories.
Shipments to Asia, a key market for Venezuelan crude, notably rose to nearly 550,000 bpd in March from 380,000 bpd in February, with most transactions facilitated through lesser-known intermediaries partnered with PDVSA over the past four years. U.S. oil major Chevron maintained its crude exports to the United States under an individual license, while European companies Eni and Repsol recorded increased receipts of Venezuelan crude.
Additionally, a rare cargo of Corocoro crude was exported to joint venture partner Eni, marking a revival of this grade not exported since 2019 due to production constraints.