CARACAS – Venezuela’s oil exports fell by almost 9 percent in September as rising international freight costs prompted traders to demand larger discounts for Venezuelan crude, creating new pressure on the country’s most important source of revenue.
Venezuela exported an average of approximately 1.08 million barrels per day last month, down from around 1.19 million barrels per day in August, according to shipping data reviewed by Reuters.
The decline came despite a substantial increase in shipments to the United States.
Venezuelan oil exports to the U.S. rose from 553,000 barrels per day in August to approximately 629,000 barrels per day in September. By contrast, shipments to India fell from 297,000 to 253,000 barrels per day.
The most dramatic decline occurred in exports to Europe, which dropped from approximately 260,000 barrels per day in August to just 86,000 barrels per day in September.
At the same time, shipments to storage terminals in the Caribbean increased from 60,000 to approximately 76,000 barrels per day.
The changes are being driven partly by higher shipping costs. Major international trading companies, including Vitol and Trafigura, have sought larger discounts on Venezuelan crude because rising freight rates are reducing the profitability of transporting the oil to international markets.
The situation has contributed to delays and the rerouting of tankers and could continue affecting demand for Venezuelan crude during October, according to traders and shipping sources cited by Reuters.
Chevron, one of PDVSA’s most important joint-venture partners, exported approximately 283,000 barrels per day during September, almost unchanged from the previous month.
International trading companies, meanwhile, handled approximately 637,000 barrels per day, compared with 597,000 barrels per day in August.
Venezuela also exported around 204,000 metric tons of petrochemicals and other oil-related products during September, up from 190,000 tons a month earlier. Demand for products including methanol and ammonia remained strong.
The latest figures show how Venezuela’s oil industry remains vulnerable not only to production levels and international political developments but also to changes in transportation costs and the discounts demanded by buyers.
The country reported crude production of approximately 1.2 million barrels per day in August, unchanged from July but higher than during the same period last year.