Venezuela’s oil production and exports were operating normally on Thursday following a disputed presidential election that has sparked international protests and backlash, but markets are on alert for persistent delays in shipments that have accumulated since the start of this year, sources told Reuters.
Due to the electoral process, which typically requires the mobilization of military personnel, state oil company PDVSA last week instructed joint ventures and its own operating areas to work with reduced personnel and a higher level of security, the same sources said.
The order has been relaxed in recent days and most PDVSA executives and staff are working regular shifts. Oil production levels, which averaged 922,000 barrels per day in June according to official figures, have not declined, reports show.
However, oil and fuel exports continue to face delays related to slow shipments from the country’s main terminal, Jose, and the need to resort to ship-to-ship cargo for some products, which typically take longer, the sources said.
Last year, the US government granted a broad license to the oil industry that allowed PDVSA to export freely to its chosen markets, triggering increased demand for Venezuelan crude.
As OPEC member country’s production did not increase in the same proportion, PDVSA began accumulating delays earlier this year in delivering cargoes negotiated with existing and new customers.
The delays, which in some cases have reached 60 days, have particularly affected importers of Venezuelan crude in Asia.
Among companies that receive oil from Venezuela under specific U.S. licenses, including those from that country, Chevron and Spain’s Repsol, delays have not been as extensive, according to export records from PDVSA, which did not immediately respond to a request for comment.
U.S. officials said this week that individual licenses granted to energy companies operating in Venezuela would not be altered or withdrawn at this time even as Washington plans actions, including the possibility of new and stronger sanctions against the country. In fact, there is international alarm about such possible moves.
US patience
The United States and other nations are “losing patience” with Venezuela over the release of detailed election data, Biden administration officials said Wednesday, as pressure mounts on authorities in Caracas to prove the victory claimed by Nicolas Maduro.
“I want to note that our patience and that of the international community is running out,” said White House spokesman John Kirby. “The wait for Venezuelan electoral authorities to come clean and publish full and detailed data on these elections is running out.”
U.S. officials said earlier this week that they would consider Maduro’s transparency in publishing voting data when considering future possible sanctions against the Chavista regime.
