Venezuela Exports Impacted by Terminal Power Outages and Backlog of Ships

Venezuela's exports of crude and refined products fell by 25% in January to 624kb/d according to LSEG based on vessel tracking data and PDVSA internal documents.

• The drop in output was driven by power outages at the main oil export terminal.
• Venezuelan crude oil exports however rose 6.8% on the month to a 4-month high in January of 523kb/d according to Bloomberg. Exports are set to keep rising amid a backlog of ships at the government-controlled oil ports and after a rise in diluent feedstock imports.
• Imports of heavy naphtha, used to thin out viscous domestic oil, more than tripled m/m to the highest in 5 years at 1.65mbbl in January according to Bloomberg.
• The US government will not renew the sanctions relief on Venezuela in April unless there is progress on allowing all presidential candidates to compete in this year’s election. according to Matthew Miller, US State Department Spokesperson.
• Venezuelan oil production is likely to decline quickly if US sanctions return with an impact on the country's ability to collect cash from its crude exports.