May 1 (Reuters) – Venezuela’s oil exports fell almost 20% to some 700,000 barrels per day (bpd) in April, the lowest level in nine months, as cargo cancellations to U.S.-based producer Chevron (CVX.N), opens new tab forced ships to return and left some ports empty, ship tracking data and documents showed. Venezuela’s state-run company PDVSA last month suspended most of the loading windows it had assigned to Chevron and ordered the return of some oil cargoes bound for the U.S. amid payment uncertainty related to the enforcement of U.S. sanctions.
I reckon if you asked the average man on the street what Venezuela’s biggest export was, he might mutter something about being Venezuelans. But dig a little deeper, and you’ll find a tale as slippery as the crude they pump from the ground. Here’s a country sitting on the world’s biggest oil reserves, yet still begging the world to buy it cheap, like a man in a silk hat peddling apples on the sidewalk. The great irony is that while the oil flows thick, the dollars trickle in thin — tangled in sanctions, tankers, and political gymnastics. And now with Uncle Sam slapping tariffs and China playing coy, Venezuela’s oil dance is looking less like a waltz and more like a three-legged race through a swamp. So Delcy la Fea goes traveling around the world pimping Venezuelan oil. (You would understand this phrase if you are Venezuelan)
So here we are — Venezuela’s riches will stay buried not just underground, but beneath layers of mismanagement and lost opportunity. As for the rest of the world, well, they’ll keep buying — just not always from Venezuela. Because in the end, business doesn’t care who you are — only how much you’re charging, and whether the check clears. China is there banker, but now China is in the blender too. Iran lost its port.
So who would benefit from all this…. Read to the bottom of the article.
Venezuela is currently facing significant challenges in its oil export sector, particularly concerning its relationship with China. Recent U.S. sanctions have imposed a 25% tariff on countries importing Venezuelan oil, effective April 2, 2025. This measure has led major buyers, including China and India, to halt their purchases to avoid these tariffs
China, previously Venezuela’s largest oil customer, has suspended imports of Venezuelan crude following the U.S. decree . This cessation has severely impacted Venezuela’s oil revenues, as China and India together accounted for over 50% of its crude exports .
In response to these sanctions and the resulting economic strain, Venezuela’s National Assembly approved an economic emergency decree on April 10, 2025. This decree grants the government powers to stimulate economic growth, combat inflation, support investors, suspend taxes, and encourage import substitution .
The situation underscores the complex interplay between international sanctions, global oil markets, and Venezuela’s economic stability. The loss of key buyers like China and India exacerbates the country’s financial difficulties and highlights the broader geopolitical tensions influencing energy trade.
Venezuela’s economy in 2025 is grappling with significant challenges, primarily stemming from its heavy reliance on oil exports and the impact of renewed U.S. sanctions.
🛢️ Oil Production and Exports
As of January 2025, Venezuela’s crude oil production stood at approximately 892,000 barrels per day (bpd), a slight decrease from 910,000 bpd in December 2024 . In April 2025, oil exports declined by nearly 20% to around 700,000 bpd, marking the lowest level in nine months . This drop was largely due to state-run PDVSA suspending most loading operations for Chevron and recalling shipments amid payment concerns tied to U.S. sanctions enforcement. (Venezuela Crude Oil: Production, 2002 – 2025 | CEIC Data, Venezuela loses 20% of oil exports after cargo cancellations to Chevron)
China remains Venezuela’s largest oil buyer, accounting for approximately 61% of April’s exports . India has also increased its purchases, capitalizing on discounted Venezuelan crude. However, the imposition of a 25% U.S. tariff on countries importing Venezuelan oil has led to significant disruptions, with major buyers like China and India halting their purchases to avoid these tariffs . (Venezuela’s Oil Exports Plunge 20% as Sanctions Trigger Cargo …)
💸 Economic Indicators
The International Monetary Fund (IMF) projects a modest 3% growth for Venezuela’s economy in 2025 . However, inflation remains a pressing issue, with rates estimated between 180% and 200% . The bolívar has depreciated significantly, compelling many businesses to adopt black market exchange rates, which has pushed everyday goods out of reach for most citizens. (Inflation, currency woes worsen Venezuela’s complex crisis as Maduro declares ‘economic emergency’)
The government’s 2025 budget is set at $22.7 billion, an increase of nearly 11% from the previous year . Despite this, oil’s contribution to the budget is expected to be less significant due to the aforementioned challenges in the oil sector. (Venezuela’s 2025 budget set to grow nearly 11%, oil to contribute less)
⚠️ Sanctions and Economic Measures
The U.S. has intensified sanctions against Venezuela, including the revocation of a U.S. Treasury license allowing Chevron to operate in the country . These sanctions have led to a significant reduction in oil exports and foreign currency inflows, exacerbating the country’s economic crisis. (Last Chevron-chartered vessel starts to return oil cargo in Venezuela, data and source say, Trump’s cancellation of oil licenses likely to stoke Venezuela inflation)
In response, President Nicolás Maduro declared an “economic emergency,” granting the government powers to stimulate economic growth, combat inflation, support investors, suspend taxes, and encourage import substitution . However, these measures have so far failed to curb the deterioration of the economy. (Inflation, currency woes worsen Venezuela’s complex crisis as Maduro declares ‘economic emergency’)
🔍 Venezuela’s Outlook
Venezuela’s economic outlook remains uncertain. While the country possesses the world’s largest proven oil reserves, significant efforts and changes are needed to revive its economy. The government’s ability to navigate the complex interplay between international sanctions, global oil markets, and domestic economic stability will be crucial in determining the country’s future trajectory. (
🇷🇺Russia, Russia, Russia
Yes, Russia has a lot of oil, and it is selling large quantities to China, especially since 2022.
Here’s a breakdown:
🔋 Russia’s Oil Reserves & Production
- Russia has the 8th largest proven oil reserves globally.
- It is one of the top 3 oil producers in the world, alongside the U.S. and Saudi Arabia.
- Most of its oil comes from Western Siberia, but new development is also happening in the Arctic and Eastern Siberia (closer to China).
🇷🇺➡️🇨🇳 Russia-to-China Oil Sales
📈 Growing Trade:
- Since the start of the Ukraine war in 2022, Russia has dramatically increased oil exports to China.
- Western sanctions pushed Russia to pivot its exports away from Europe toward Asia, especially China and India.
- In 2023 and 2024, China became Russia’s largest oil customer, often buying more than 2 million barrels per day.
🛢️ Major Routes:
- ESPO Pipeline – The Eastern Siberia–Pacific Ocean pipeline goes directly from Russia into northeast China.
- Seaborne Exports – Crude is shipped from Russian Far East ports to Chinese refineries, often at discounted prices.
💵 Payment & Discounts:
- China buys Russian oil at a discount due to Western sanctions.
- Payments are often made in yuan or rubles, bypassing U.S. dollar systems and SWIFT banking restrictions.
🌍 Strategic Significance:
- This energy partnership helps China secure long-term energy supplies.
- It helps Russia keep its oil revenues flowing despite losing European markets.
- It strengthens geopolitical ties as both countries push back against Western influence.
So you see it is never so simple and never just an accident!
© 2025 insearchofyourpassions.com - Some Rights Reserve - This website and its content are the property of YNOT. This work is licensed under a Creative Commons Attribution 4.0 International License. You are free to share and adapt the material for any purpose, even commercially, as long as you give appropriate credit, provide a link to the license, and indicate if changes were made.
