Venezuela Oil Exports Steady in May as China Shipments Rise

Venezuela’s oil exports remained stable in May 2025 despite the U.S. Treasury and State departments revoking export licenses for companies trading Venezuelan crude, which took full effect by May 27. Shipments to China increased significantly, reaching about 584,000 barrels per day, offsetting a sharp decline in sales to the United States and Europe, where deliveries to traditional customers like Chevron and India’s Reliance Industries halted. PDVSA completed a final U.S.-authorized oil swap with Maurel & Prom and Vitol before the license expiration and began exporting Boscan heavy crude independently to Asia, a grade previously supplied jointly with Chevron to U.S. refiners. The Biden administration maintained sanctions citing concerns over Venezuela's democratic reforms and migrant repatriation, while Venezuela condemned the sanctions as an economic war. Despite U.S. sanctions tightening, Venezuela’s oil sector adapted by relying more on intermediaries and shadow shipping channels, and fuel imports increased to support production, particularly of heavy naphtha for crude dilution. Overall, China has emerged as Venezuela’s main oil buyer, sustaining the country’s critical oil export revenues amid geopolitical pressures.