Venezuela's Oil Exports: A Surge Amid Sanctions

Venezuela's oil exports surged to nearly 1 million barrels per day, driven by demand from Asia. Despite U.S. sanctions and domestic challenges, exports rose significantly. The rise occurred even with infrastructure issues, affecting byproduct and petrochemical exports. U.S. policy changes under the new administration could impact future trade dynamics.

Venezuela's oil exports rose sharply last month, nearing 1 million barrels per day, spurred by increased sales to Asian markets. This marked the highest export level since early 2020, despite stringent U.S. sanctions, according to ship monitoring data.

Since 2019, Venezuela has faced volatile crude and refined product exports due to sanctions and aging oil infrastructure, plagued by underinvestment and operational mishaps. Yet, last month, the state oil company, PDVSA, and its affiliates managed to export an average of 974,033 bpd, predominantly to China, reflecting a consecutive monthly increase.

The rise in exports, up 10% from October and 57% compared to the previous year, came alongside notable sales to Asia's primary buyers, despite a significant explosion at a major PDVSA natural gas facility. As U.S. policies towards Venezuela await potential revision under the President-elect, exports to Europe increased, while sales to the U.S. slightly declined.

(With inputs from agencies.)