OGEJOURNAL Menu

Venezuelan Oil Begins Shipping to Caribbean Islands

Venezuelan crude has started arriving at storage facilities in the Caribbean, marking a shift in the country’s oil exports after the U.S. took control of Caracas’ oil sector.

Over the past weekend, tankers delivered about 2.5 million barrels of Venezuela’s Merey crude to Saint Lucia and Curacao, key points for wider regional exports. More shipments are expected in the coming days to the Bahamas.

The U.S. is working with trading companies Trafigura Group and Vitol Group to help sell Venezuelan oil and is encouraging American oil companies to invest in the country to revive its struggling industry. The new trade activity has also affected shipping, causing freight rates to rise on some routes.

Recent deliveries include the Aframax tanker Volans, which unloaded 600,000 barrels at Curacao’s Bullen Bay facility on January 17. Another vessel, the very-large crude carrier Kelly, offloaded 1.9 million barrels at Castries, Saint Lucia, the first Venezuelan oil shipment to the island since December 2018.

In the Bahamas, the VLCC Marbella delivered 1.9 million barrels to South Riding Point on January 19. Another supertanker, Rene, carrying 1.7 million barrels, is expected to arrive later this week.

Previously, Venezuela mainly used “dark fleet” tankers to export crude to China. Under U.S. oversight, the country is now offering cargoes to a wider set of buyers, including refiners in India and the U.S. Gulf Coast.