Venezuela's Oil Industry Faces New Crisis Amidst U.S. Embargo

Venezuela's oil exports have come to a standstill due to port captains not receiving permissions to authorize ships, amid escalating U.S. sanctions. This halt in activity threatens to force reductions in oil production as storage facilities reach capacity.

Venezuela's oil exports have ground to a halt due to U.S. sanctions and a lack of authorization for ships to leave. Port captains have not received requests to set loaded ships on their way, leading to a paralysis in exports, according to four sources close to the operations.

President Trump confirmed an oil embargo is fully operational, resulting in several ships that recently loaded with crude and fuel failing to depart for destinations, including the U.S. and Asia. Some vessels scheduled to load left the port empty, as confirmed by TankerTrackers.com, while no tankers were loading at Venezuela's chief oil port, Jose.

This total suspension of oil exports threatens to compel a reduction in output levels at the oilfields, as storage tanks and floating storage vessels are rapidly filling up. PDVSA and Chevron, the state-run oil company's main partners, have not commented on the situation yet.

(With inputs from agencies.)