Venezuelan Oil for China: Supertankers Make U-Turns | Mariner News
Two China-flagged supertankers, poised to collect Venezuelan oil for China, recently made unexpected U-turns, LSEG shipping data reveals. This significant development suggests that the direct flow of crude cargoes from the U.S.-sanctioned South American nation to its primary Asian buyer remains blocked, despite recent U.S. statements about maintaining crude access for China. The incident highlights ongoing complexities in global oil trade dynamics.
Supertanker U-Turns Signal Export Hurdles
The very large crude carriers (VLCCs), Xingye and Thousand Sunny, previously en route to Venezuela, abruptly changed course back towards Asia. This reversal underscores the persistent impact of Washington’s oil embargo. Although U.S. officials had previously indicated that China would not be deprived of Venezuelan crude following a new export deal, direct shipments from state-run PDVSA to China have ceased since last month. This disruption forces a reevaluation of supply mechanisms for the crucial Asian market.
Global Trading Houses Fill the Void
In light of these direct export challenges, global trading powerhouses Vitol and Trafigura are preparing the initial shipments from a recently announced $2 billion deal. These crude oil cargoes are slated for the U.S. and other destinations, including India and potentially China, albeit indirectly through these traders. This arrangement could ultimately benefit Chinese refiners by providing alternative access to Venezuelan crude via third-party negotiations, navigating the intricate web of international sanctions and oil trade routes.
