Venezuela's crude oil exports in September 2023 have decreased to 1 million and 80 thousand barrels per day due to financial pressures and global demand. This reduction of about 9% compared to August indicates that multiple factors have influenced this trend.
Reasons for the Decrease in Oil Exports
The state-owned oil company of Venezuela (PDVSA) has faced discount requests from major trading companies like Vitol and Trafigura due to reduced profit margins from increased shipping costs. These pressures have led to decreased demand and rerouting of tankers, resulting in delays in shipments. This trend is expected to continue in the current month.
Impact on International Markets
Venezuela's oil exports to India in September decreased to 253 thousand barrels per day, down from 297 thousand barrels in August. Exports to Europe also fell from 260 thousand barrels to about 86 thousand barrels. However, oil exports to storage terminals in the Caribbean region increased from 60 thousand barrels to 76 thousand barrels per day.
Chemical company Chevron, PDVSA's largest joint venture partner, maintained its crude oil exports in September at 283 thousand barrels per day. In total, trading companies exported about 637 thousand barrels of oil daily to various destinations, an increase from 597 thousand barrels in August.
Exports of Oil Products and Changes in Imports
In September, Venezuela exported about 204 thousand tons of oil products and petrochemicals, an increase from 190 thousand tons in August. This increase is due to sustained global demand for products like methanol and ammonia. Meanwhile, daily imports of heavy naphtha and other oil products decreased from 166 thousand barrels in August to 99 thousand barrels in September.
According to internal documents from PDVSA, crude oil storage at the Jose terminal, Venezuela's largest oil terminal, has seen a slight decrease compared to the beginning of this year. Additionally, Venezuela reported to the Organization of the Petroleum Exporting Countries (OPEC) that its crude oil production in August reached 1 million and 200 thousand barrels per day, unchanged from July.
