Venezuela’s state-owned oil company, PDVSA, has been unable to ship crude oil to Asian markets for the fifth day in a row. The pause comes as the United States continues strict oil sanctions, often described as an “oil quarantine,” which is blocking tanker movements in and out of Venezuela.
While exports to Asia remain frozen, Chevron has restarted limited oil shipments to the United States after a short suspension. Chevron is currently the only Western oil company allowed to operate in Venezuela under U.S. authorization, and its crude is shipped directly to refineries along the U.S. Gulf Coast.
Asian buyers, especially China — Venezuela’s largest crude customer — are now receiving lower volumes. The slowdown is partly due to reduced price incentives. The discount on Venezuela’s flagship Merey crude has narrowed compared to Brent oil, making it less attractive for Chinese refiners.
The situation has worsened following increased U.S. naval enforcement, which has disrupted tanker traffic and delayed oil loadings. As a result, oil inventories are building up at Venezuelan ports, adding pressure on PDVSA’s production and export capacity.
U.S. officials have made it clear that the oil embargo will remain in place for the foreseeable future. According to U.S. leadership, the goal is to restrict oil revenue until conditions align with U.S. national interests and what they describe as the long-term interests of the Venezuelan people.
The continued embargo is expected to keep Venezuelan oil exports to Asia limited, reshape crude trade flows, and maintain uncertainty in global heavy crude supply markets.
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Editor-at-Large
A passionate writer in the lubricant industry, Awais Iqbal has been covering oils, greases, and industrial fluids since the start of his career. At 25, he’s already written for blogs, catalogs, and brand guides across the UAE. Awais’s insights help companies connect with their audience, and his clear, helpful writing style is trusted by brands in the region.
