The oil exports of Venezuela have to diminish and shifted toward India since the new US sanctions started on 28th January as the state-run oil company PDVSA attempts to replace the deliveries to the United States and Europe which were intervened by the payment restrictions.
The South American nation is rolling its focus to the direct paying buyers, especially in India, its second-biggest customer after the United States, among the US approvals outlined to disrupt the financial support for Venezuelan President Nicolas Maduro. US sanctions are figured for interrupting the access of Nicolas Maduro to the oil revenue which has assisted his government remains in power.
In the last two weeks, since the approvals were declared, PDVSA has been able to load and export 1.15 million barrels per day of crude, as well as refined products, as per the Definitive Eikon data. Venezuela was transporting about 1.4 million barrels per day in the months before approvals, as per the Eikon data.
Two supertankers of oil, Folegandros and Baghdad carrying cargoes from Jose terminal of Venezuela to the Indian ports.
Ship tracking data showed several other tankers carrying crude or fuel from Venezuela to Asia, although the final destinations of these vessels were not yet clear. But obtaining customers in Asia may be difficult according to the analysts, as Washington utilizes its political and financial influence to pressurize the countries to establish a clear deal with PDVSA.
The bank wrote, “Considering all the difficulties that Venezuela faces in delivering oil to other markets and the legal, reputational and financial risks confronting traders or counterparties that do business with it under the current conditions ”, “it seems unlikely that all production can, in short order, go to other markets”.