Freight Costs Send Venezuela Oil Exports Plummeting by 9%
Venezuela's oil exports took a hit in September as soaring freight costs forced traders to demand steeper discounts and delayed cargoes from the country. According to data, Venezuela's oil exports fell nearly 9% to 1.08 million barrels per day in September.
Global trading houses, including Vitol and Trafigura, pressed PDVSA for better terms as freight costs ate into their margins. Tanker reroutings added to shipping delays that had accumulated over the summer.
The United States took more Venezuelan crude despite the overall decline, with shipments rising to 629,000 bpd from 553,000 bpd in August. India's purchases fell to 253,000 bpd from 297,000 bpd, while European purchases plunged to 86,000 bpd from 260,000 bpd.
Chevron shipped about 283,000 bpd, roughly unchanged from August, while trading firms moved 637,000 bpd, up from 597,000 bpd. Venezuela produced about 1.2 million bpd in August, according to figures reported to OPEC.