Venezuela’s oil exports remained largely unchanged in May despite mounting pressure from the U.S. and the expiration of key licenses that once allowed limited sanctioned trade. Increased shipments to China helped offset a sharp drop in U.S.-authorized sales as state-run PDVSA scrambled to re-route barrels ahead of tightening sanctions.
According to internal PDVSA documents and vessel-tracking data, Venezuela shipped 779,000 bpd of crude and refined products last month—down only slightly from April’s 783,000 bpd. While exports to U.S.-authorized firms like Chevron and Reliance came to a halt, China-bound cargoes surged to 584,000 bpd, up from 521,000 bpd in April.
The resilience comes despite a hard stop to licenses that previously allowed U.S. and European firms to legally engage with Venezuela’s sanctioned oil sector. May 27 marked the final deadline for Chevron and others to wind down operations. PDVSA canceled multiple cargoes to Chevron due to payment concerns, and new shipments of Boscan heavy crude—once sent to U.S. refiners—were instead dispatched to Asia.
This shift follows Venezuela’s latest controversial election, which saw President Nicolás Maduro tighten his grip on power. With turnout estimated below 15% by the opposition, the Biden administration cited the lack of credible democratic reform as a key reason for letting the licenses expire. Secretary of State Marco Rubio confirmed last week that no further extensions would be granted.
In a last-minute move, PDVSA completed a large oil swap with France’s Maurel & Prom and trading giant Vitol—the final U.S.-authorized transaction under the previous license regime. Meanwhile, fuel imports jumped to 159,000 bpd as PDVSA rushed to stockpile heavy naphtha for blending operations.
With Western doors closing and sanctions tightening, Venezuela’s oil now flows more heavily through intermediaries and shadow channels—keeping barrels moving, but with far less transparency and far more risk.
By Julianne Geiger for Oilprice.com
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