Venezuela's Floating Oil Challenge Amid U.S. Sanctions

Venezuela's PDVSA is using tankers for oil storage due to U.S. sanctions, causing cargo delays. Despite production stability, rising inventory levels are straining capacity. Chevron continues operations, while Venezuela negotiates contracts. President Maduro emphasizes commitment to Chevron, opposing U.S. pressures.

Venezuela's state-run oil company, PDVSA, is storing crude and fuel oil in tankers in its waters as U.S. actions on Venezuela-linked ships complicate exports. Company documents and shipping data reveal growing inventories due to U.S. authorities intercepting oil shipments.

This month, two Venezuelan oil-filled tankers were seized by the U.S. Coast Guard in the Caribbean. These tankers are part of a 'shadow fleet' of vessels carrying sanctioned oil. Consequently, the company's onshore tanks, especially at the Jose terminal, are reaching capacity, necessitating the use of tankers for storage to avoid halting production.

Despite operational challenges, Chevron has not halted its joint export endeavors, and PDVSA's oil exports to China continue. President Maduro reaffirmed Venezuela's commitment to Chevron, countering U.S. measures targeting vessels involved in oil transport.

(With inputs from agencies.)