Venezuela's Oil Exports Surge in January as U.S. Eases Sanctions, Data Reveals

By Marianna Parraga

HOUSTON, Feb 2 (Reuters) – Venezuela’s oil exports climbed sharply in January, reaching approximately 800,000 barrels per day (bpd), tanker tracking data shows, marking a significant recovery after Washington lifted a blockade that had crippled the OPEC nation’s shipments the previous month.

The rebound follows a series of U.S. Treasury licenses granted to global trading houses Trafigura and Vitol in January, authorizing them to export millions of barrels of Venezuelan crude and fuel oil that had been stranded in storage. The move effectively ended a short-lived embargo imposed in December, which had led to the seizure of seven tankers and forced state-run PDVSA to slash production.

"The licensing shift was a necessary pressure valve," said Carlos Gutierrez, a Latin America energy analyst at Horizon Consultancy. "Without it, Venezuela’s energy sector was facing operational paralysis, with over 40 million barrels of inventory locked up. This restores some cash flow, but the long-term recovery hinges on sustained export momentum and further license approvals for PDVSA’s partners."

January’s export volume neared the 2024 average of 847,000 bpd, though it remained slightly below the 867,000 bpd shipped in January 2025. Analysts note that traders must maintain an accelerated pace to clear the massive inventory overhang and allow PDVSA to fully reverse its recent production cuts.

In a further step to normalize trade, the U.S. Treasury last week issued a broad license permitting U.S. companies to engage with PDVSA across export, storage, transport, and refining activities. However, key partners like Chevron are still awaiting individual licenses to expand their operations in the country.

The United States re-emerged as the top single destination for Venezuelan crude in January, receiving about 284,000 bpd—more than a third of which was shipped by Chevron. China, which had taken over 70% of Venezuela’s exports until December, received 156,000 bpd last month. Notably, no shipments were reported to political ally Cuba.

Under the U.S. licenses, Vitol and Trafigura exported about 12 million barrels (roughly 392,000 bpd) in January, primarily to Caribbean storage hubs, before onward sales to customers in the U.S., Europe, and India.

The developments are part of a broader $2 billion supply deal between Caracas and Washington, struck shortly after the capture of President Nicolás Maduro, which stipulates that sale proceeds be directed to a U.S.-supervised fund. An estimated 18 million to 38 million barrels remain to be exported under that agreement.

In a sign of returning market diversity, Venezuela also shipped its first cargo of liquefied petroleum gas (LPG) in nearly three years on Sunday, aboard the Trafigura-chartered vessel Chrysopigi Lady.

Reactions & Analysis:

"This is a pragmatic, if imperfect, step toward stabilizing global oil flows from a key producer," said David Chen, a senior fellow at the Global Energy Policy Institute. "The structured fund for proceeds attempts to address past governance concerns, but its effectiveness will depend on transparency."

"Finally, some sanity prevails," remarked Isabella Rossi, a risk consultant for maritime traders. "The December blockade was causing logistical chaos and hurting global heavy crude supplies. These licenses provide crucial short-term relief, though the regulatory environment remains fragile."

"This isn't energy policy; it's political theater," argued Miguel Soto, a Caracas-based economist and frequent government critic. "The U.S. swaps one form of control for another, legitimizing a sector built on opacity. Where is the guarantee that this 'supervised fund' will benefit the Venezuelan people and not just elites in both countries?"

"The return of LPG exports is a small but positive indicator of operational normalization," added Priya Sharma, a commodities analyst at FinMark. "It shows the easing of constraints beyond just crude. The key now is whether PDVSA can secure enough diluents, like the heavy naphtha imported last month, to sustain exportable blend production."

(Reporting by Marianna Parraga; Editing by Julia Symmes-Cobb, Franklin Paul and Alexander Smith)