Venezuela’s state-run oil company PDVSA is grappling with a growing backlog of unsold crude, widening price discounts and mounting pressure from customers after the United States seized an oil tanker carrying Venezuelan oil, according to traders and industry sources. The seizure, carried out last week by the U.S. Coast Guard near Venezuela’s coast, marked the first time Washington has intercepted a tanker transporting crude from the OPEC member, escalating economic pressure on President Nicolás Maduro’s government.
The vessel, Skipper, had been carrying oil linked to Venezuela and Iran when it was seized, and the U.S. subsequently imposed sanctions on six ships and their associated companies. By the time the action occurred, PDVSA was already struggling to place its crude at near-contract prices due to a surge of sanctioned oil competing for buyers in China, the country’s primary export destination.
Price discounts for Venezuela’s flagship Merey heavy crude bound for China have widened sharply, reaching as much as $21 per barrel below Brent benchmark prices, up from discounts of $14 to $15 per barrel just a week earlier, traders and a company source said. Much of the increase reflects higher costs associated with so-called “war clauses,” which vessel owners are demanding to cover the risk of interception, delays or rerouting caused by the heightened U.S. military presence in the Caribbean.
While PDVSA has endured deep discounts since U.S. sanctions were first imposed in 2019, the current situation is compounded by intense competition from discounted Russian and Iranian oil. That competition has weakened demand for Venezuelan heavy crude, particularly among Chinese independent refiners who now face fewer supply concerns despite Washington’s actions.
Customers have begun pushing PDVSA to loosen trading terms in response to the increased risks. Several buyers are asking the company to relax its requirement that oil cargoes be prepaid using digital currency before departure, while others are seeking reimbursement for demurrage fees stemming from shipping delays. Sources warned that if PDVSA does not adjust its terms, it could face a wave of requests to return cargoes.
Washington has been intensifying efforts to restrict the financial lifeline of Maduro’s administration, which relies heavily on oil revenues to sustain subsidies and government programs. China has become an even more critical outlet this year, receiving between 55 percent and 90 percent of Venezuela’s monthly oil exports, up from 40 percent to 60 percent last year. In November alone, Venezuela exported about 952,000 barrels per day, with roughly 778,000 barrels per day shipped to China, according to vessel tracking data.
Despite the pressure, analysts say Chinese buyers are not rushing to secure Venezuelan crude due to ample alternative supplies. However, they warn that exports could fall sharply as early as February if tankers currently loaded and waiting in Venezuelan waters remain unable to depart. More than 11 million barrels of Venezuelan oil are currently stuck aboard vessels as traders negotiate steeper discounts, sources said.
PDVSA’s main joint venture partner, U.S.-based Chevron, remains the only company exporting Venezuelan crude without significant delays. Other shippers working with sanctioned vessels have increasingly operated in “dark mode,” switching off transponders to avoid detection. Compounding PDVSA’s difficulties, a cyberattack this week disabled the company’s administrative systems, forcing a temporary halt to oil deliveries at several terminals. PDVSA did not respond to requests for comment, though Oil Minister Delcy Rodríguez said last week that operations would not be disrupted by U.S. actions.
