Venezuela's Fuel Conundrum: Overflowing Tanks Amidst U.S. Blockade

Venezuela faces dilemmas arising from overflowing fuel inventories due to U.S. sanctions impeding tanker movements. PDVSA is employing unconventional storage solutions, including reopening idle tanks and using waste pools, to avert refinery shutdowns. The crisis is exacerbated by limited export options, predominantly to Asia, for high-sulfur fuel oil.

Venezuela is grappling with overfilled fuel inventories following stringent U.S. sanctions that have stalled tanker traffic. This bottleneck has prompted state oil firm PDVSA to explore drastic measures to prevent refinery closures, sources report.

Due to the production of extra-heavy crude that necessitates complex refining, Venezuela generates large volumes of residual fuel oil for export, primarily to Asia. However, recent blockade-induced constraints have severely limited these exports, as attested by company and shipping data.

As storages near full capacity, PDVSA is resorting to reopening dormant tanks and utilizing oil waste pools in the western region to maintain operations at the country's largest refining complex, Paraguana Refining Center.

(With inputs from agencies.)