Trump Effect: Chinese Supertankers Turn Back from Venezuela

Reuters reported that two Chinese supertankers bound for Venezuela turned back and returned to Asia, citing LSEG shipping data. Reporting also notes that China had not received oil cargoes from PDVSA since December.

Two Chinese supertankers that were sailing toward Venezuela to pick up oil-for-debt cargoes made U-turns and returned to Asia, Reuters reported on Monday citing LSEG shipping data. The movements occur amid long-running oil-for-debt arrangements between Venezuela and China and reporting that China had not received PDVSA cargoes since December. U.S. measures affecting Venezuelan oil were cited in coverage, including a December order restricting sanctioned tankers and a recent executive order related to Venezuelan oil revenues. Nicolás Maduro and his wife Cilia Flores are reported to be detained and undergoing trial proceedings in Brooklyn. Main facts: - Two Chinese supertankers heading to Venezuela to load oil-for-debt cargoes reversed course and sailed back to Asia, Reuters cited LSEG shipping data. - Reporting indicated China had not received any PDVSA oil cargo since December, and internal PDVSA documents showed China was the destination for a large share of Venezuela's exports last year. - Coverage noted recent U.S. actions related to Venezuelan oil shipments, and that Nicolás Maduro and Cilia Flores are detained and in trial proceedings in Brooklyn. Summary: The reported turnbacks suggest Venezuela may not be directly exporting oil to China in the near term. Reporting placed the events in the context of existing oil-for-debt arrangements and recent U.S. measures. Undetermined at this time.