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Venezuelan oil exports exceed 1 million barrels per day for the first time since 2020

According to documents and shipping data from the state-run PDVSA, Venezuelan oil exports in September averaged 1,09 million barrels a day, which is the highest level since February of 2020. Data and documents show that the country has been struggling to stabilize its oil production and exports after coming under U.S. sanction in 2019. However, rising crude production, sales of stocks accumulated and increased imports of diluents for exportable crude grades have all contributed to a boost in oil shipments. The average for September was 13% higher than the previous month, and 39% higher than a year earlier. Around 84% of the total exports went to China directly or indirectly last month. China remained the top destination for Venezuelan crude shipped by intermediaries who have been trading Venezuelan oil since the sanctions were imposed.

The data shows that an authorization granted by Donald Trump's U.S. administration in late July to Chevron has also allowed for increased exports. In September, 108,000 bpd Venezuelan crude was sent to the U.S., compared to 60,000 bpd in August.

Oil exports dropped in the second quarter after the Trump administration suspended all licenses granted to foreign energy companies operating in Venezuela. This led to an increase of crude oil inventories, especially at Venezuela's primary production region, the Orinoco Belt. Some licenses were not reinstated.

PDVSA has been draining these stocks since August while securing the imports of heavy crude oil and heavy naphtha, which is essential to dilution of OPEC's extra heavy output from allies, including Russia and China.

Imports of diluents fell to 41,000 bpd from 99,000 bpd during the preceding month.

Venezuela, however, has increased its purchases of heavy naphtha, light crude, and especially those from Russia this year. The accumulated average for the period through September is now 92,000 bpd, up from 88,000 bpd during the same period last year.

Last month, Venezuela exported to its political ally Cuba 52,000 bpd crude oil and fuel and 74,000 tons of methanol.

Venezuela reported to OPEC a crude production of 1.1 millions bpd for August, higher than the 1.08million bpd from the previous month. This is the highest output since February 2019.

(source: Reuters)