Category: Stock Market

Chevron became the sole exporter of the nation’s oil after President Nicolas Maduro was overthrown, and a small fleet of ships it had reserved is now sailing to Venezuela.

 

According to preliminary data compiled by Bloomberg, at least 11 ships are expected to arrive at the Venezuelan-controlled ports of Jose and Bajo Grande, indicating that Chevron will export more Venezuelan oil this month than last.

All eyes are on the Houston- based company to see if it will begin exporting more Venezuelan crude after US President Donald Trump stated that he wanted “total access” to Venezuela’s enormous reserves .

Chevron is the only Western company with a license from the Treasury Department to produce and export crude oil in Venezuela. It manages the transportation of the crude to fuel producers in the US Gulf and East Coast markets, accounting for nearly 25% of the country’s production. “Chevron continues to prioritize the SA.

” Chevron is still loading oil despite at least 12 ships headed for Venezuela being turned away due to a strong US military presence in the Caribbean to impose an oil blockade. The US naval blockade captured two tankers transporting sanctioned crude. According to CBS News, the US is currently pursuing a third tanker, Marinera, also known as Bella 1.

 

The 11 chartered ships expected to arrive in January would be the most since 12 tankers loaded in October. Data shows nine tankers loaded with oil in December, including shipments from Chevron and oil that the US government had seized. The combined capacity of the 11 tankers is 152, 152,000 barrels of oil per day, more than the 123, 123,000 barrels per day loaded for the US in December. Vessel movements monitored by Bloomberg show that two of the eleven ships are currently docked, and one has already loaded.

All of the oil is sent to US refineries such as Marathon Petroleum, Phillips 66, and Valero Energy Corp. To ease a domestic glut caused by export backlogs during the naval blockade, the oil major is removing oil. Petroleos de Venezuela SA, the nation’s state oil company, may have to start plugging wells unless Chevron exports oil.