Venezuela to reduce oil production amid US export embargo pressures

Venezuela has reportedly started reducing lipid accumulation arsenic it grapples with the consequences of a US export embargo that has halted shipments, the country's main gross source.

The state-owned lipid company, PDVSA, initiated these cuts owed to constricted retention capableness amidst a blockade that has disrupted exports, reported Reuters.

The concern places further strain connected Venezuela's interim government, which is attempting to support power pursuing the seizure of President Nicolas Maduro and his woman by US forces.

PDVSA has requested that associated ventures (JV), including those with China National Petroleum Corporation (CNPC) and Chevron, standard backmost output. The petition comes arsenic onshore inventories emergence and determination is simply a shortage of diluents needed for blending Venezuela's dense crude.

This affects operations specified arsenic Petrolera Sinovensa, Petropiar, Petroboscan and Petromonagas, which is present solely operated by PDVSA, having antecedently being co-managed with Russian state-run Roszarubezhneft.

Despite Chevron’s cargoes moving nether a peculiar licence from Washington, different shipments person stopped owed to sanctions, which person besides led to the seizure of 2 lipid cargoes.

Workers astatine Sinovensa are preparing to disconnect immoderate good clusters successful effect to the over-accumulation of dense crude and diluent shortages, though these could beryllium reconnected successful the future, Reuters reported.

Meanwhile, Petromonagas reduced output, awaiting pipeline-provided diluents.

Production setbacks could impact refining processes and home substance supplies, challenging the interim government’s efforts to unafraid gross and support stability.

Oil Minister Delcy Rodriguez, presently Venezuela's interim president, asserted past period that accumulation and exports would persist successful spite of US measures.

However, PDVSA has resorted to utilizing vessels for crude retention since precocious December 2025 and slowing deliveries astatine its main port.

With onshore retention nearing capacity, the institution has been utilizing tankers arsenic floating retention for crude and fuel, with much than 17 cardinal barrels (mbbl) waiting offshore to depart.

Reuters cited TankerTrackers.com, reporting that nary tankers astatine the Jose larboard are loading lipid for export oregon home use.

Venezuela achieved regular output of astir 1.1mbbl successful November 2025. The state exported 950,000 barrels per time (bpd) then, but US actions reduced this to astir 500,000bpd successful December.

"Venezuela to trim lipid accumulation amid US export embargo pressures" was primitively created and published by Offshore Technology, a GlobalData owned brand.