CARACAS – Venezuela’s oil exports fell by around 10 percent in July compared to the previous month, as key partners of state-owned oil company PDVSA await U.S. approval to expand their operations in the country. According to shipping data and internal PDVSA documents reviewed by Reuters, the slowdown reflects both sanctions-related restrictions and pending negotiations.
Venezuela shipped an average of 727,000 barrels per day (bpd) of crude oil and refined products in July, down from 807,000 bpd in June. An additional 227,000 metric tons of oil products and petrochemicals were exported, a volume similar to the previous month.
Chevron Resumes Limited Exports to U.S.
Chevron, currently the only Western oil company licensed to operate in Venezuela, will resume shipments to the United States in August. CEO Mike Wirth said exports will be limited and sourced from the company’s four joint ventures with PDVSA, which together account for roughly a quarter of Venezuela’s total oil production.
At the end of July, the U.S. government granted Chevron a specific license allowing oil exports but prohibiting direct payments to President Nicolás Maduro’s government. The arrangement permits tax and royalty payments in kind—through crude oil or oil products—rather than cash. In exchange, Chevron will provide diluents for Venezuela’s heavy crude oil. Negotiations on the details are ongoing.
The license follows an earlier halt in April, when PDVSA canceled scheduled shipments over payment disputes linked to U.S. sanctions imposed since 2017 to restrict Venezuela’s oil revenue.
China Remains Top Buyer
Despite sanctions, China remains Venezuela’s dominant market, receiving about 95 percent of July’s oil shipments, either directly or through intermediaries. Political ally Cuba received 31,000 bpd of crude oil, gasoline, and jet fuel.
The U.S. decision to allow Chevron’s limited return has sparked debate in Congress, with critics warning of China’s growing influence in Latin America. Other companies, such as Spain’s Repsol and Italy’s Eni, are still awaiting similar U.S. approvals to restart Venezuelan operations.
Economic Strain Deepens
While U.S. officials stress that the Chevron deal will not generate direct revenue for the Venezuelan state, Caracas views it differently. Senior official Diosdado Cabello insisted that Chevron “will not take oil for free” and labeled the agreement confidential.
Meanwhile, Venezuela’s economic situation continues to deteriorate. The bolívar has lost more than 240 percent of its value against the U.S. dollar over the past year, and the Central Bank of Venezuela has not released official inflation data since October 2024.
