Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Resumption of deliveries to Europe boosts Venezuela oil exports -data

Published 05/07/2022, 18:27
Updated 06/07/2022, 11:00
© Reuters. FILE PHOTO: An oil tanker is docked while oil is pumped into it at the ships terminal of PDVSA's Jose Antonio Anzoategui industrial complex in the state of Anzoategui April 15, 2015. REUTERS/Carlos Garcia Rawlins/File Photo

By Marianna Parraga and Mircely Guanipa

(Reuters) -The first Venezuelan crude cargoes sent to Europe in two years helped lift the OPEC nation's oil exports by 61% last month after a series of setbacks earlier in the year, tanker tracking data and documents from state-run PDVSA showed.

Italy's Eni and Spain Repsol (BME:REP) started taking Venezuelan crude after receiving a green light from the U.S. State Department. The U.S. decision, a move to help Europe compensate for the loss of Russian oil following its invasion of Ukraine, also marks a step toward better relations between Caracas and Washington.

The oil-for-debt exchanges, viewed by analysts as a sign of the easing of Washington's sanctions on the South American nation, happened as U.S. officials visited Caracas to discuss the release of jailed Americans. That visit failed to secure their release.

In June, PDVSA and its joint ventures shipped an average of 630,500 barrels per day (bpd) of crude and fuel, a 61%-increase from the previous month and similar to the same month last year, according to the documents and Refinitiv data.

Venezuela's May exports had plummeted due to changes imposed by PDVSA requiring prepayments for cargoes. The changes came after some buyers reneged on payments.

Almost two-thirds of total exports last month went to Asia. Cuba, which is struggling to meet domestic demand due to unaffordable fuel prices, received some 66,400 bpd of crude, fuel oil, gasoil and gasoline from its ally, the data showed.

Still, PDVSA continued struggling to manage heavy and diluted crude inventories, which were near full capacity and forced six unplanned disruptions at one of its blending stations last month, according to one of the documents viewed by Reuters.

© Reuters. FILE PHOTO: An oil tanker is docked while oil is pumped into it at the ships terminal of PDVSA's Jose Antonio Anzoategui industrial complex in the state of Anzoategui April 15, 2015. REUTERS/Carlos Garcia Rawlins/File Photo

OPEC Secretary General Mohammad Barkindo said on Tuesday that allowing extra supplies from Iran and Venezuela to flow to markets could ease a global supply shortage.

A similar call was made by the French government last week, which said the international community should explore all options to alleviate a Russian squeeze of energy supplies.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.