Venezuela Battles Rising Oil Stockpile Amid U.S. Seizures

Venezuela's PDVSA faces growing oil inventories as U.S. seizes ships linked to Venezuelan crude. Tankers fill up to manage excess at the Jose terminal, a key export hub. With China as the primary customer, Chevron maintains exports, while new U.S. sanctions complicate further shipments and negotiations.

Venezuela's state oil company, PDVSA, is grappling with surging oil inventories as the United States moves to seize tankers linked to Venezuelan crude shipments. Company documents and shipping data reveal that PDVSA is filling up tankers with crude and fuel oil stored in its onshore facilities.

Amid PDVSA's production of 1.1 million barrels per day, the company is now resorting to filling tankers to manage its stockpile, especially at the Jose terminal. This move comes as the U.S. Coast Guard targets a 'shadow fleet' of vessels carrying sanctioned oil, prompting shipping companies to reconsider engagements.

Chevron's operations remain undisturbed, continuing to export crude, notably to China, which absorbs 80% of Venezuela's oil exports. Meanwhile, PDVSA negotiates with clients on price discounts amid looming U.S. sanctions and considers floating storage as a strategic response to manage its inventory crisis.

(With inputs from agencies.)