Venezuela Oil Exports Plunge as Global Supplies Normalize

Venezuela's crude oil exports took a significant hit in July, falling by 25% compared to the previous month. According to data from Kpler Ltd and vessel tracking reports published by Bloomberg, the country averaged around 856,000 barrels per day during this period.

This decline is largely attributed to India cutting its purchases of Venezuelan crude oil by half in June. Indian refineries had previously increased their demand for heavy crude, but as global supplies normalized, the need for Venezuelan shipments decreased.

The conflict in the Middle East has also played a significant role in this shift, with alternative maritime routes and logistical solutions making it possible to release millions of barrels held up in the Persian Gulf. This increased availability of crude oil in Asian markets further dampened demand for South American sales.

Notably, China's absence from the market is also a factor. Beijing has cut off direct energy transactions with Caracas, while the US and India have become the main recipients of Venezuelan hydrocarbons under specific licenses administered by the Treasury Department.