KEY POINTS
- Venezuelan oil in floating storage rose above 29 million barrels.
- U.S. forces intensified enforcement of an offshore oil blockade.
- Chinese refiners are cutting back amid tighter supply risks.
Venezuela’s oil is piling up offshore as U.S. pressure on the country’s energy trade tightens, leaving tankers loaded with crude and few clear destinations. The volume of Venezuelan oil held in floating storage climbed above 29 million barrels, up from about 20 million barrels at the start of the week, according to vessel-tracking data compiled by Kpler and cited by Bloomberg.
The buildup follows a dramatic escalation in Washington’s approach toward Caracas. U.S. forces captured President Nicolas Maduro in a weekend operation and flew him to New York to face drug-trafficking charges. The Trump administration has since pressed Venezuelan authorities to grant what it described as total access to the country’s oil resources, while maintaining a strict offshore blockade.
U.S. blockade tightens grip
The United States continues to enforce what it calls an oil quarantine on Venezuela, deploying naval and security assets to disrupt shipments from a country that holds the world’s largest proven crude reserves. U.S. forces have pursued and seized tankers carrying sanctioned Venezuelan oil, extending the reach of the blockade beyond the Caribbean.
According to Oilprice, one of the latest actions involved the seizure of a Russia-flagged tanker in the North Atlantic after a pursuit that began near Venezuelan waters. The operation ended a chase that started in late December, when the vessel abruptly changed course and headed into the open Atlantic in an apparent attempt to evade U.S. enforcement. The incident marked a sharp step up in Washington’s campaign against what it describes as shadow exports.
The intensified pressure has pushed more Venezuelan barrels onto tankers, with storage at sea swelling by nearly 10 million barrels in just one week. Kpler’s data show much of the increase concentrated in Asian waters, reflecting the trade routes that have sustained Venezuelan exports under sanctions.
China’s demand shows strain
China has played a central role as a buyer of Venezuelan crude in recent years, particularly after U.S. sanctions narrowed the pool of willing customers. That demand has begun to soften. Chinese buyers have scaled back purchases as the discount on Venezuela’s flagship Merey crude narrowed to about $13 per barrel from $15 last month, Bloomberg reported, citing people familiar with the matter.
Although U.S. officials have signaled they do not intend to cut China off entirely from Venezuelan oil, independent refiners remain cautious. Many see the growing stockpile at sea as a warning that supply flows could tighten quickly.
“Chinese teapots are already bracing for the possibility that the barrels now in transit will be their last,” said Muyu Xu, a senior crude analyst at Kpler. The swelling armada of tankers underscores how geopolitics, not geology, continues to shape Venezuela’s oil trade.
