Venezuela's oil exports unchanged amid stagnant output and high freight rates

SEATTLE (Oil Monster): Venezuela's oil exports were little ‌changed at 1.08 million barrels per day in October as stagnant crude production and high freight rates continued to curb demand for many South American grades, according to shipping data seen by Reuters on Tuesday.

Venezuela's oil output and exports ​have rebounded this year to near pre-sanctions levels following the US capture of then-president Nicolas ​Maduro in January and a flagship agreement with global traders overseen by Washington.

However, ⁠growth has recently plateaued as oil and gas producers prepare investments to expand production capacity through imports ​of drilling rigs and equipment and repairs to state-run PDVSA's ageing infrastructure.

A total of 67 vessels departed ​Venezuelan waters in October carrying crude, fuel, oil byproducts and petrochemicals. Export volumes were down 0.5% from September and the lowest since February, but were 21% higher than a year earlier, the data showed.

Exports to the US, the largest destination for ​Venezuelan crude, fell nearly 29% from the previous month to about 449,000 bpd. The US government ​in October received and sold to US refineries the first Venezuelan crude cargo from its flagship deal with producer North ‌American Blue ⁠Energy Partners (NABEP), the company and a White House official said.

Venezuela's shipments to Europe rose to 235,000 bpd from 86,000 bpd in September, while exports to India edged down to 242,000 bpd from 253,000 bpd. Shipments to Caribbean storage hubs increased to 83,000 bpd from 76,000 bpd.

Chevron's exports of Venezuelan crude rose ​to about 303,000 bpd, ​their second highest monthly ⁠average this year. Shipments handled by traders including Vitol and Trafigura fell to about 506,000 bpd from 637,000 bpd in September, according to the data, ​which combines PDVSA exports records and vessel-tracking information.

At Venezuela's main oil terminal, Jose, ​inventories of ⁠flagship crude grade Merey closed the month below September levels. But stocks of diluted crude oil made with naphtha continued rising to approach 4 million barrels in a sign of weak demand, a PDVSA document showed.

Venezuela ⁠also ​imported 139,000 bpd of naphtha from the US and Europe ​in October, which PDVSA and its partners use to dilute their extra heavy oil output. Imports in September averaged 91,000 bpd.

Courtesy: www.reuters.com