Venezuela’s oil industry is facing a severe crisis, driven not only by failing infrastructure and mismanagement but also by intense geopolitics and sanctions. The U.S. has tightened restrictions, cutting off much of Caracas’ access to the global oil market.
Last week, Venezuelan Vice President Delcy Rodríguez visited Beijing with an urgent plea: China must buy more Venezuelan oil quickly. This comes as President Trump has ordered Chevron and other foreign oil companies to leave Venezuela by May 27. He also imposed 25% tariffs on anyone importing Venezuelan crude, isolating Venezuela’s last major customer—China.
However, China is reluctant to help unconditionally. Chinese officials are demanding even larger discounts on Venezuelan oil and are seeking to renegotiate contracts. With few buyers left, China is using its leverage to push for better deals.
Venezuela’s oil exports are already shrinking. In April, shipments dropped by nearly 20%, partly because PDVSA canceled Chevron’s cargoes early. Desperate to evade international tracking, some tankers have started operating as “zombie ships,” sailing covertly from Venezuelan ports.
China remains Venezuela’s largest creditor and continues to accept oil as loan repayments. But even this flow is weakening. Production at Sinovensa, a joint venture between China’s CNPC and PDVSA, has fallen to 103,000 barrels per day (bpd), down from 160,000 bpd in 2015.
The U.S. administration is now warning of “consequences” for countries that keep buying Venezuelan oil, suggesting that secondary sanctions on China could be next. For Venezuela’s fragile economy, losing its main oil customer could be disastrous. The country’s central bank reserves are dwindling, its currency—the bolívar—is collapsing again, and inflation is soaring.
Rodríguez described her visit to China as “confidential” and “extremely happy.” Others see it as a desperate last attempt to keep Venezuela’s oil lifeline alive.
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