Venezuela's Oil Exports Slump Amid Rising Freight Costs

Venezuela's oil exports decreased to 1.08 million barrels per day (bpd) in September from 1.19 million bdp in August, as traders sought discounts to offset rising freight costs.

The state-run PDVSA was pressed by global trading houses, including Vitol and Trafigura, for steeper price cuts due to shrinking margins caused by increasing freight rates.

As a result, shipping delays and tanker re-routings became more common. Exports to the US increased to 629,000 bpd in September, while shipments to India fell to 253,000 bpd from 297,000 bpd in August.