At least two tankers carrying approximately 2.5 million barrels of Venezuelan crude oil have begun offloading their cargo at various Caribbean islands, following approval from the United States to market the oil. Deliveries were made over the weekend to storage tanks on the islands of Santa Lucía and Curaçao, according to ship tracking data accessed by Bloomberg.
Increased Shipments to the Bahamas
Additional tankers carrying Venezuelan crude are expected to arrive at various Caribbean destinations, including the Bahamas, in the coming days. The supertanker Marbella arrived at South Riding Point, Bahamas, on January 19th with roughly 1.9 million barrels of crude. Another vessel, the René, is transporting over 1.7 million barrels and is scheduled to arrive in the Bahamas later this week.
The U.S. government is utilizing two of the world’s leading oil trading firms, Vitol and Trafigura, to sell the Venezuelan crude on the international market. U.S. authorities are also reportedly encouraging major U.S. oil companies to invest in Venezuela, with the goal of revitalizing a severely impacted oil industry following years of sanctions and underinvestment.
Impact on Shipping Rates
The movement of Venezuelan crude is also reportedly impacting the international shipping market. Information suggests that U.S. intervention regarding certain vessels has led to a sudden increase in freight rates on specific routes.
On January 17th, the Volans, authorized by both the United States and the United Kingdom, discharged approximately 600,000 barrels of oil in Curaçao at Bullen Bay storage facilities, destined for Vitol. The following day, January 18th, the Kelly arrived in Castries, Santa Lucía, and discharged approximately 1.9 million barrels of Venezuelan crude.
Frequently Asked Questions
What quantities of crude oil have been delivered?
At least 2.5 million barrels of Venezuelan crude oil have been delivered to islands in the Caribbean, with the Volans delivering 600,000 barrels to Curaçao and the Kelly delivering 1.9 million barrels to Santa Lucía.
Which companies are involved in selling the oil?
The U.S. government is working with Vitol and Trafigura, two of the world’s leading oil trading firms, to sell the Venezuelan crude on the international market.
Are more shipments expected?
Yes, more tankers carrying Venezuelan crude are expected to arrive at various Caribbean destinations, including the Bahamas, in the coming days. The Marbella arrived in the Bahamas with 1.9 million barrels, and the René is expected to arrive later this week with over 1.7 million barrels.
How might these developments affect the broader geopolitical landscape surrounding Venezuela and its oil industry?
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