Oil Market to Lose Almost Third of Venezuelan Crude due to US Sanctions - Report

04:04 GMT, 15 February 2019

MOSCOW (Sputnik) – Nearly 370,000 barrels of crude oil per day, produced by the Venezuelan state-owned PDVSA company, will be left without a market by March due to the US sanctions, imposed on the oil giant amid the Venezuelan political crisis, S&P Global Platts has reported, citing the company’s technical report seen by it.

Sputnik

The outlet reported on Thursday, that the energy company expected the crude export volume to be 1.050 million barrels daily in March.

However, according to the figures published by outlet, the company will have available 262,000 barrels per day, originally intended for Citgo, its US-based subsidiary; 73,000 barrels per day originally destined for Valero company; 32,000 barrels per day, originally destined for Chevron; and 1,000 barrels per day, originally meant to be stored to pay loans to the Japan Bank for International Cooperation. This makes up 35.2 percent of the company's crude available for export.

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As the United States prohibited naphtha suppliers to export the substance to Venezuela, PDVSA, which needs naphtha to dilute its crude, planned to lower the production of diluted crude, the reports added.

On 28 January, the United States announced it was imposing sanctions on PDVSA, blocking the company's assets worth $7 billion that remained under the US jurisdiction.

According to the White House' forecast, the company will lose another $11 billion in missed oil revenues. In addition, Washington introduced a ban on making deals with the company.