Venezuelan refined oil imports down by half

Venezuelan imports of clean refined products have fallen by half since the US imposed sanctions on the country's state-owned oil company on 28 January, according to vessel tracking data.

The country's economy, under the stress of US-imposed sanctions designed to push president Nicolas Maduro from power, has continued to shrink, lowering demand for gasoline and diesel. From the time the sanctions on Venezuelan's state owned oil company PdV were imposed in January until now, the country's products imports have dropped to 102,000 b/d, or less than half of what they were in the same period last year.

Russia has replaced the US as Venezuela's top clean refined products supplier, sending 25pc of the total since sanctions, according to data from vessel tracking firm Vortexa. Following Russia were the Netherlands, Latvia, and Spain, with 13pc, 12pc, and 10pc of the total, respectively.

Gasoline/blending components, naphtha, and diesel/gasoil have remained the country's top three refined products imports, according to Vortexa data. Venezuela's imports of gasoline/blending components were 61,000 b/d in the period between the start date for the sanctions and now, compared with 133,000 b/d in the same period last year. Gasoline supply in the country's service stations is scarce, suggesting that the imports are failing to meet even the diminished demand. The country's imports of naphtha, which PdV uses as diluent to allow for the export of its heavy crude, dropped similarly. Naphtha imports fell to 23,000 b/d since sanctions, compared with 61,000 b/d in the same period last year.

Last week's decision by the US Treasury Department to expand sanctions by forbidding the sale of naphtha to Venezuela by any international firm with a US presence may accelerate the trend of falling Venezuelan naphtha imports.

Venezuelan diesel/gasoil imports remained largely steady, with Venezuela receiving 16,000 b/d since sanctions, and 17,000 b/d in the same time frame last year, according to Vortexa data.

Chronic operational problems in Venezuela's refining complex continue to prevent domestic production from meeting the dwindling demand.

The Venezuelan oil ministry estimates that domestic gasoline and diesel consumption have dropped to below 120,000 b/d and 100,000 b/d, respectively, down from peaks of more than double those volumes earlier this decade.