Venezuela’s Importing the Most Fuel Since U.S. Sanctions Started

0 comments

Venezuela’s Importing the Most Fuel Since U.S. Sanctions Started

in Freight News 12/08/2019

Venezuela is importing fuel at a rate not seen since the U.S. imposed crippling sanctions on the country and cut off its main supply of foreign gasoline.

Fuel imports, which are key to President Nicolas Maduro’s grip on power in Venezuela, more than doubled in July from the previous month, according to shipping reports and ship-tracking data compiled by Bloomberg. Maintaining that supply of heavily subsidized gasoline is central to keeping a lid on discontent in the nation, already suffering from inflation, food shortages and a widespread humanitarian crisis.

Gasoline supplies are especially important as state-owned oil refiner Petroleos de Venezuela SA, or PDVSA, is expected to operate at just 15% of its capacity through 2020, according to Nicolas Daher, a London-based analyst at Facts Global Energy. “So fuel imports are and will continue to be vital for meeting domestic fuel demand and avoiding any further increase in social discontent.”

The last time a Venezuelan leader attempted to phase out fuel subsidies, a wave of riots broke out nationwide leaving at least 3,000 dead. Despite escalating U.S. sanctions, the Venezuelan government has so far kept gasoline prices at bay. Venezuelans can fill a tank with less than $1.

In July, imports soared to 196,000 barrels a day, with Greece as the main supplier. About 33% of that volume loaded in Agioi Theodoroi, the port that serves refineries owned by Motor Oil (Hellas) Corinth Refineries S.A, Greece’s largest exporter of oil products. The Athens-based company has an agreement to supply oil products to a Rosneft Oil Co PJSC subsidiary, Petrocas Energy Ltd, through 2022. Rosneft is a long-time ally of PDVSA, having loaned $6.5 billion to be paid back in oil.

Rosneft’s press-office did not respond to Bloomberg messages seeking a comment on oil product supplies to Venezuela.

While Venezuela used to import all of its gasoline from U.S. Gulf refiners, that flow came to a halt after sanctions were announced. Since then, PDVSA has been importing mostly from Greece and Russia, but also Turkey, Nigeria and the United Arab Emirates. The South American nation imports gasoline, diesel and MTBE, a gasoline octane booster. It also imported cargoes of vacuum gas oil, a feedstock used by refineries to produce gasoline.

Most of the gasoline is supplied in barter deals, where companies including Rosneft provide gasoline and diesel in exchange for crude oil. Rosneft got 58% of all crude cargoes exported by the country in July, and was also responsible for most of the fuel cargoes supplied to the country, according to data compiled by Bloomberg. PDVSA also got diesel cargoes from Repsol SA in July.

“Due to the U.S. sanctions, barter deals will continue being vital for both Venezuela’s fuel imports and crude exports,” Daher said.


Source: Bloomberg 2019-08-12

Leave a Reply

SSCP   CAS-002   9L0-066   350-050   642-999   220-801   74-678   642-732   400-051   ICGB   c2010-652   70-413   101-400   220-902   350-080   210-260   70-246   1Z0-144   3002   AWS-SYSOPS   70-347   PEGACPBA71V1   220-901   70-534   LX0-104   070-461   HP0-S42   1Z0-061   000-105   70-486   70-177   N10-006   500-260   640-692   70-980   CISM   VCP550   70-532   200-101   000-080   PR000041   2V0-621   70-411   352-001   70-480   70-461   ICBB   000-089   70-410   350-029   1Z0-060   2V0-620   210-065   70-463   70-483   CRISC   MB6-703   1z0-808   220-802   ITILFND   1Z0-804   LX0-103   MB2-704   210-060   101   200-310   640-911   200-120   EX300   300-209   1Z0-803   350-001   400-201   9L0-012   70-488   JN0-102   640-916   70-270   100-101   MB5-705   JK0-022   350-060   300-320   1z0-434   350-018   400-101   350-030   000-106   ADM-201   300-135   300-208   EX200   PMP   NSE4   1Z0-051   c2010-657   C_TFIN52_66   300-115   70-417   9A0-385   70-243   300-075   70-487   NS0-157   MB2-707   70-533   CAP   OG0-093   M70-101   300-070   102-400   JN0-360   SY0-401   000-017   300-206   CCA-500   70-412   2V0-621D   70-178   810-403   70-462   OG0-091   1V0-601   200-355   000-104   700-501   70-346   CISSP   300-101   1Y0-201   200-125  , 200-125  , 100-105  , 100-105  , CISM   NS0-157   350-018  , NS0-157   ICBB  , N10-006 test  , 350-050   70-534   70-178   220-802   102-400   000-106   70-411  , 400-101   100-101  , NS0-157   1Z0-803   200-125  , 210-060   400-201   350-050   C_TFIN52_66  , JN0-102  , 200-355   JN0-360   70-411   350-018  , 70-412   350-030   640-916   000-105   100-105  , 70-270  , 70-462   300-070  , 300-070   642-999   101-400   PR000041   200-101  , 350-030   300-070  , 70-270  , 400-051   200-120   70-178   9L0-012   70-487   LX0-103   100-105  ,