• 5 minutes Is Pete Buttigieg emerging as the most likely challenger to Trump?
  • 7 minutes Can LNG Kill Oil?
  • 8 minutes Question: Why are oil futures so low through 2020?
  • 11 minutes US Shale: Technology
  • 6 hours “The era of cheap & abundant energy is long gone. Money supply & debt have grown faster than real economy. Debt saturation is now a real risk, requiring a global scale reset.”"We are now in new era of expensive unconventional energy
  • 10 hours CoV-19: China, WHO, myth vs fact
  • 6 hours Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 10 hours Blowout videos
  • 40 mins Has Trump put the USA at the service of Israel?
  • 15 hours Democrats Plan "B" Bloomberg Implodes. Plan "C" = John Kerry ?
  • 15 mins Oil Stocks
  • 2 days Question - What if there are no buyers for Chevron's Appalachia Assets?
  • 1 day Natural Gas
  • 2 days Cheap natural gas is making it very hard to go green
  • 2 days Energy from thin air?
Alt Text

Oil Rallies On Small Crude Inventory Build

Oil prices rose on Thursday…

Alt Text

A Middle East Financial Crisis Is In The Making

A Dubai-based operator of ports…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Why Venezuela’s Production Rebound Is So Significant For Oil Markets

Venezuela’s PDVSA produced between 926,000 and 965,000 bpd of crude oil last month, up by as much as 20 percent from the previous month when the average was 761,000 bpd, unnamed sources close to the company told Reuters.

The output of superheavy oil in the Orinoco belt where most of Venezuela’s oil wealth is concentrated averaged 465,000-502,000 bpd last month.

Exports of crude were even higher, the sources said. These exceeded 1 million bpd in November, including crude oil and fuels. Internal reports showed the increase was thanks to a rebound in shipments to India, Reuters reported earlier this month.

Bloomberg reported in early November, citing shipping data, that Venezuela had loaded almost 11 million barrels of crude in just the first 11 days of the month, which was more than twice as much as it did in the same period last month. Most of the oil seemed to have gone to India and China, with half of the vessels transporting it turning their transponders off to avoid detection.

Related: The Best And Worst Oil Majors Of 2019

Earlier this year, under U.S. pressure, most Venezuelan oil buyers pulled back from doing business with PDVSA. In October, however, India’s Reliance Industries decided to restart its direct trade with the Venezuelan oil company, which immediately affected shipments. Spain’s Repsol also braved the U.S. in restarting the buying of heavy crude from Venezuela.

The increase in production and exports is noteworthy not just because it suggests Venezuela, largely thanks to its production joint venture partners, including Rosneft, CNPC, and Chevron, is more resilient to U.S. sanctions than some may have believed. It is noteworthy because it also suggests there is healthy demand for Venezuelan heavy despite the looming IMO 2020 fuel emission rules due to come into effect next month. These would require shippers to use low-sulfur fuel, which is widely expected to affect heavy crude demand negatively.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage




Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News