Houston: Venezuela’s oil exports have tapered off and shifted toward India since new U.S. sanctions began Jan. 28 as state-run oil company PDVSA seeks to replace deliveries to the United States and Europe that were disrupted by payment restrictions.
The South American nation is turning its focus to cash-paying buyers, especially in India, its second-largest customer after the United States, amid U.S. sanctions designed to undercut financial support for Venezuelan President Nicolas Maduro. Sanctions are designed to bar Maduro’s access to oil revenue that has helped his government remain in power.
In the two weeks since the sanctions were announced, PDVSA has been able to load and export 1.15 million barrels per day (bpd) of crude and refined products, according to Refinitiv Eikon data. Venezuela was exporting about 1.4 million bpd in the months before sanctions, according to the Eikon data.
Two supertankers, Baghdad and Folegandros I, launched late on Monday from Venezuela’s Jose terminal carrying cargoes to Indian ports.
Ship tracking data in Refinitiv showed several other tankers carrying Venezuelan crude or fuel towards Asia, although the final destinations of these vessels were not yet clear.
But finding customers in Asia may be difficult, analysts said, as Washington uses its political and financial clout to pressure countries to stay clear of dealing with PDVSA.
Barclays bank addressed the issue in a special report on Venezuela, issued on Tuesday.
“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,” the bank wrote, “it seems unlikely that all production can, in short order, go to other markets.”
U.S. bank Goldman Sachs said in a note on Wednesday that because of the sanctions there was “limited ability for non-U.S. refiners to take on Venezuela’s very heavy crude” beyond India and China.
Madrid/Barcelona : Twelve Catalan politicians go on trial on today for their role in Catalonia’s failed 2017 independence bid, putting the spotlight back on Spain’s biggest political crisis in decades which could make it flare once again.
To the dismay of much of the rest of Spain, Catalonia defied a judicial ban by carrying out a referendum and subsequently unilaterally declaring independence in October 2017.
There was shock at home and abroad when police used batons and rubber bullets on protesters on the day of the vote. Some of the Catalan separatist leaders were later arrested or fled the country.
The start on Tuesday of the trial will refocus attention on the region’s push for secession which so rattles Spain’s political and cultural identity.
The trial will decide if Catalan nationalist leaders stay in jail. The public prosecutor is seeking prison terms of up to 25 years on charges of rebellion and misuse of public funds. At stake are Spain’s stability, the future of Catalonia’s independence movement as well as the region’s and the central government’s image abroad.