Navigating Sanctions: PDVSA's Struggle to Keep Oil Afloat

Venezuela's state-run PDVSA faces challenges in maintaining oil exports amid a U.S. blockade. Two sanctioned tankers recently arrived, while others approach, reflecting efforts to expand storage and continue crude sales. The situation highlights strategic shifts, including China's involvement, amidst increased U.S. sanctions and logistical hurdles.

Two oil tankers have recently arrived in Venezuela, with more en route, as state-run PDVSA strives to maintain crude exports despite a U.S. blockade. The blockade, part of U.S. President Donald Trump's strategy against Venezuelan President Nicolas Maduro, has severely curtailed exports.

U.S. actions have led to significant reductions in oil exports, with the seizure of Venezuelan oil shipments and increased patrols in the Caribbean. This has instilled fear among vessel owners, causing many to alter their routes, though a few persist in delivering to Venezuela.

Meanwhile, Venezuela engages in strategic swaps with China to fulfill debt obligations using crude. As logistical challenges mount, PDVSA negotiates new terms to continue oil sales, but disruptions from cyberattacks and U.S. policies compound the industry's challenges.

(With inputs from agencies.)