Loading of Venezuela's heavy crude at its main oil ports slowed this week after the U.S. imposed a tariff on trade with countries buying oil from the South American nation, and Chevron began reducing its tanker fleet there, according to shipping data.
The U.S. recently published an executive order stating that any country purchasing oil or gas from Venezuela will incur a 25% tariff on trades with the U.S. starting in early April. Additionally, Washington extended the deadline for Chevron to wind down operations in Venezuela to May 27, impacting exports of Venezuelan crude to the U.S.
These measures primarily direct pressure on buyers of Venezuelan crude other than the U.S., particularly China. However, the planned enforcement methods are still unclear.
As of Tuesday, Venezuela's main oil port, Jose, operated by state-owned PDVSA, had an empty berth while three supertankers were loading. No tankers were loading for exports at Bajo Grande, which handles shipments of the heaviest crude grades. Approximately two dozen vessels, mostly supertankers, were waiting to load around Jose, and two remained in Venezuelan waters after completing their loads. Two ships have left the country empty since mid-February.
Venezuela exported about 910,000 barrels per day (bpd) of crude and fuel last month, with Chevron's exports declining to 252,000 bpd, down from 294,000 bpd in January. The increasing bottleneck of tankers may result in loading and shipping delays in the coming days, as many customers are uncertain about the U.S. tariff's implementation, particularly China, the largest buyer of Venezuelan oil.
Trade of Venezuelan oil to China stalled on Tuesday due to the U.S. tariff order, with traders and refiners in that country awaiting clarity on how the order will be implemented and whether Beijing will instruct them to cease purchases. In February, Venezuela sent approximately 503,000 bpd to China, accounting for 55% of total exports.
While the U.S. granted Chevron seven additional weeks to wind down operations in Venezuela, the impending termination of its license has reduced the number of vessels chartered by the company waiting to load in Venezuelan waters. So far this month, seven cargoes of Venezuelan oil chartered by Chevron have departed the country, compared to 15 in February.
PDVSA and Chevron did not immediately respond to requests for comment. Venezuela has claimed that U.S. sanctions amount to an economic war and has accused Washington of violating international trade rules.