• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 10 hours Maybe 8 to 10 "good" years left in oil industry * UAE model for Economic Deversification * Others spent oil billions on funding terrorism, wars, suppressing dissidents * Too late now
  • 1 day Long Range Attack On Saudi Oil Field Ends War On Yemen
  • 3 hours Only thing that moves oil price up is an attack on Tankers or Oil Facilities (Staged or real?)
  • 14 hours In The Bright Of New Administration Rules: Immigrants as Economic Contributors
  • 2 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 3 hours Russia Accuses U.S. Of Stoking Tensions With Missile Test
  • 7 hours With Global Warming Greenland is Prime Real Estate
  • 6 hours Recession Jitters Are Rising. Is There Reason To Worry?
  • 2 hours What to tell my students
  • 17 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 1 day US Petroleum Demand Strongest Since 2007
  • 19 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 10 hours Get First Access To The Oilprice App!
The Number One Gold Stock Of 2019

The Number One Gold Stock Of 2019

Gold prices are soaring amid…

A Booming Niche In Energy’s Hottest Market

A Booming Niche In Energy’s Hottest Market

The battery recycling market is…

Rosneft’s Head Berates Maduro For Oil Cargo Delays

Sechin Putin

Rosneft’s chief executive, Igor Sechin, last week flew to Caracas to have words with President Maduro regarding delays in the shipments of Venezuelan crude that Caracas had agreed to send to Russia as a repayment for cash, Reuters reports, citing sources close to the talks.

“He brought information showing that they were meeting obligations with China but not with them,” one of the sources told Reuters. “They’re running around in PDVSA because of this.”

What’s more, another source said the Russian delegation was not the only one visiting Caracas: a Chinese delegation was also there.

Russia and China are pretty much the only countries left that are willing to lend Caracas a hand amid U.S. sanctions and falling oil production that have combined to create a severe economic crisis. China is the bigger benefactor, having poured as much as US$50 billion into Venezuela since its troubles began, which could explain why Caracas is giving priority to shipments to China.

Yet Russia has also been generous: Reuters has calculated that Moscow has lent Caracas some US$17 billion since 2006. What’s more, Rosneft has an option to purchase a majority stake in the crown jewel of PDVSA, Citgo, which the Venezuelan company used as collateral for one of the latest loans granted by the Russian company.

More Reuters calculations show that PDVSA has been falling behind in its shipments to China as well. At an average daily rate of shipments at 463,500 for the period between January and August, PDVSA was about 60 percent compliant with the terms of its contracts. Daily shipments to Russia averaged 176,680 bpd over the same eight-month period, which constituted a compliance rate of 40 percent, Reuters noted.

Meanwhile, oil production in Venezuela is falling relentlessly. Over the past 12 months, it shed 37 percent and now stands at 1.17 million barrels daily.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • RefCoor on November 26 2018 said:
    Do the math on these shipment levels to Russia & PRC. China is being shorted about 180K BPD and Russia about 250K BPD. Those are the short shipment levels totaling 430K BPD. Now add what they actually shipped, a total of 630K BPD, and you get 1,060K BPD that is their committed shipment level to these two countries.

    If they are only producing 1,170K BPD that leaves only 110K BPD for everything else. Hence, the Russkies and ChiComms are taking a short hit of 430K BPD so Maduro can stay in power with Raul's backing. It is not good to short a Russian oligarch. Very unhealthy business practice which generally results in a pinprick of Polonium 210. The question is only when.
  • Uncle Sam on November 26 2018 said:
    Russia needs the cash to feed their hungry workers. Venezuela needs the cash to feed their hungry workers. Both nations are using the same socialist business plan.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play