Latest news with #PDVSA
Yahoo
12 hours ago
- Business
- Yahoo
Venezuela's oil exports stable as buyers in China receive more
(Reuters) -Venezuela's oil exports remained almost unchanged last month as increased shipments to customers in China offset a decline in U.S.-authorized sales, according to vessel-tracking data and internal documents from state company PDVSA. The U.S. Treasury and State departments in March revoked the authorizations they had granted in recent years for PDVSA's customers and partners to export oil from sanctioned Venezuela. They gave the firms until May 27 to wind down transactions. The license expirations and PDVSA cancelling some cargoes to one of its main partners, Chevron, due to payment uncertainties, reduced deliveries to the state company's traditional customers in the U.S. and Europe. However, intermediaries received more cargoes bound for China. U.S. President Donald Trump's administration has increased pressure on Venezuela amid complaints about what U.S. officials have called the OPEC country's lack of progress towards electoral reforms and migrant returns. President Nicolas Maduro's government rejects the sanctions and has said they amount to an "economic war" against Venezuela. The U.S. energy sanctions have been in place since 2019 and companies abiding by them need U.S. authorization to export Venezuela's oil or do business with PDVSA. In May, a total of 30 vessels departed from Venezuelan waters carrying an average 779,000 barrels per day of crude and refined products, and 291,000 metric tons of oil byproducts and petrochemicals, according to the data and documents. In April, the South American country had exported 783,000 bpd of crude and fuel as sales to U.S.-authorized customers began to fall, down from 850,000-900,000 bpd in previous months. In May 2024, oil exports averaged 770,000 bpd, according to the data. China was the largest receiver of Venezuela's oil last month with some 584,000 bpd, above the 521,000 bpd of April. The U.S. received some 140,000 bpd, slightly more than the 130,000 bpd of the previous month. PDVSA did not deliver any cargoes to Chevron or India's Reliance Industries in May, but a large oil swap with joint-venture partner Maurel & Prom and trading house Vitol was completed as planned, marking the last U.S.-authorized deal before the license expirations. The Venezuelan state firm began exporting Boscan heavy crude on its own to Asia, the documents showed. The grade jointly produced with Chevron was feeding U.S. refiners before the license expirations. PDVSA and Reliance did not immediately reply to requests for comment. Vitol and M&P declined to comment. Chevron last week confirmed its license for Venezuela had expired and said its presence in the country remained "in compliance with all applicable laws and regulations," including the U.S. sanctions framework. Venezuela increased fuel imports to some 159,000 bpd in May from 94,000 bpd in April, the data showed, a move to replenish stocks of the heavy naphtha PDVSA needs to dilute its extra heavy output ahead of the reinforcement of U.S. sanctions.
Reuters
12 hours ago
- Business
- Reuters
Venezuela's oil exports stable as buyers in China receive more
June 3 (Reuters) - Venezuela's oil exports remained almost unchanged last month as increased shipments to customers in China offset a decline in U.S.-authorized sales, according to vessel-tracking data and internal documents from state company PDVSA. The U.S. Treasury and State departments in March revoked the authorizations they had granted in recent years for PDVSA's customers and partners to export oil from sanctioned Venezuela. They gave the firms until May 27 to wind down transactions. The license expirations and PDVSA cancelling some cargoes to one of its main partners, Chevron (CVX.N), opens new tab, due to payment uncertainties, reduced deliveries to the state company's traditional customers in the U.S. and Europe. However, intermediaries received more cargoes bound for China. U.S. President Donald Trump's administration has increased pressure on Venezuela amid complaints about what U.S. officials have called the OPEC country's lack of progress towards electoral reforms and migrant returns. President Nicolas Maduro's government rejects the sanctions and has said they amount to an "economic war" against Venezuela. The U.S. energy sanctions have been in place since 2019 and companies abiding by them need U.S. authorization to export Venezuela's oil or do business with PDVSA. In May, a total of 30 vessels departed from Venezuelan waters carrying an average 779,000 barrels per day of crude and refined products, and 291,000 metric tons of oil byproducts and petrochemicals, according to the data and documents. In April, the South American country had exported 783,000 bpd of crude and fuel as sales to U.S.-authorized customers began to fall, down from 850,000-900,000 bpd in previous months. In May 2024, oil exports averaged 770,000 bpd, according to the data. China was the largest receiver of Venezuela's oil last month with some 584,000 bpd, above the 521,000 bpd of April. The U.S. received some 140,000 bpd, slightly more than the 130,000 bpd of the previous month. PDVSA did not deliver any cargoes to Chevron or India's Reliance Industries ( opens new tab in May, but a large oil swap with joint-venture partner Maurel & Prom ( opens new tab and trading house Vitol was completed as planned, marking the last U.S.-authorized deal before the license expirations. The Venezuelan state firm began exporting Boscan heavy crude on its own to Asia, the documents showed. The grade jointly produced with Chevron was feeding U.S. refiners before the license expirations. PDVSA and Reliance did not immediately reply to requests for comment. Vitol and M&P declined to comment. Chevron last week confirmed its license for Venezuela had expired and said its presence in the country remained "in compliance with all applicable laws and regulations," including the U.S. sanctions framework. Venezuela increased fuel imports to some 159,000 bpd in May from 94,000 bpd in April, the data showed, a move to replenish stocks of the heavy naphtha PDVSA needs to dilute its extra heavy output ahead of the reinforcement of U.S. sanctions.
Yahoo
12 hours ago
- Business
- Yahoo
Venezuela's oil exports stable as buyers in China receive more
(Reuters) -Venezuela's oil exports remained almost unchanged last month as increased shipments to customers in China offset a decline in U.S.-authorized sales, according to vessel-tracking data and internal documents from state company PDVSA. The U.S. Treasury and State departments in March revoked the authorizations they had granted in recent years for PDVSA's customers and partners to export oil from sanctioned Venezuela. They gave the firms until May 27 to wind down transactions. The license expirations and PDVSA cancelling some cargoes to one of its main partners, Chevron, due to payment uncertainties, reduced deliveries to the state company's traditional customers in the U.S. and Europe. However, intermediaries received more cargoes bound for China. U.S. President Donald Trump's administration has increased pressure on Venezuela amid complaints about what U.S. officials have called the OPEC country's lack of progress towards electoral reforms and migrant returns. President Nicolas Maduro's government rejects the sanctions and has said they amount to an "economic war" against Venezuela. The U.S. energy sanctions have been in place since 2019 and companies abiding by them need U.S. authorization to export Venezuela's oil or do business with PDVSA. In May, a total of 30 vessels departed from Venezuelan waters carrying an average 779,000 barrels per day of crude and refined products, and 291,000 metric tons of oil byproducts and petrochemicals, according to the data and documents. In April, the South American country had exported 783,000 bpd of crude and fuel as sales to U.S.-authorized customers began to fall, down from 850,000-900,000 bpd in previous months. In May 2024, oil exports averaged 770,000 bpd, according to the data. China was the largest receiver of Venezuela's oil last month with some 584,000 bpd, above the 521,000 bpd of April. The U.S. received some 140,000 bpd, slightly more than the 130,000 bpd of the previous month. PDVSA did not deliver any cargoes to Chevron or India's Reliance Industries in May, but a large oil swap with joint-venture partner Maurel & Prom and trading house Vitol was completed as planned, marking the last U.S.-authorized deal before the license expirations. The Venezuelan state firm began exporting Boscan heavy crude on its own to Asia, the documents showed. The grade jointly produced with Chevron was feeding U.S. refiners before the license expirations. PDVSA and Reliance did not immediately reply to requests for comment. Vitol and M&P declined to comment. Chevron last week confirmed its license for Venezuela had expired and said its presence in the country remained "in compliance with all applicable laws and regulations," including the U.S. sanctions framework. Venezuela increased fuel imports to some 159,000 bpd in May from 94,000 bpd in April, the data showed, a move to replenish stocks of the heavy naphtha PDVSA needs to dilute its extra heavy output ahead of the reinforcement of U.S. sanctions. Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
Venezuela ramps ups taxes on private sector as Chevron oil exit bites
(Reuters) -Venezuela's government is increasing taxes and public service charges on the private sector to compensate for declining oil revenue after tighter U.S. sanctions, according to business leaders and analysts, who predict the measures will hinder already struggling private enterprise. Washington in February canceled key licenses for a handful of partners and customers of state oil company PDVSA, including Chevron, that had allowed them to export Venezuelan oil under U.S. sanction exemptions. It also imposed secondary tariffs on Venezuela's oil buyers. Analysts estimate these actions could reduce the OPEC member's oil income, which was around $15 billion in 2024, by approximately 30%. This anticipated revenue loss has led the government to demand advance tax payments, conduct more audits, levy significant fines, and permit local authorities and public service providers to raise their fees, said a dozen businesspeople. These measures add pressure to a private sector grappling with years of economic crisis, high inflation, and currency controls. Neither the communications ministry, finance ministry nor tax agency responded to requests for comment. President Nicolas Maduro, who in April decreed an economic emergency that allows him to erase tax exemptions, had already asked officials in January to double tax income from $5.2 billion last year. Officials are heeding the call - tax revenues rose by about a fifth in the first quarter. Maduro's government has always rejected U.S. sanctions, referring to them as an "economic war". Businesspeople have held meetings with the government in a bid to have some taxes revised, three sources said, but to no avail. A May survey by the industrial guild Conindustria, which represents producers of food, chemicals, plastics and textiles, found that 77% of businesspeople identified the tax burden as the primary obstacle to their operations. About 60% of those surveyed plan little to no increase in production in the coming months. "Whatever additional tax is paid will come from the working capital," said Luigi Pisella, president of Conindustria. He added that the tax base must be expanded to avoid concentrating the burden on existing businesses. "Those who manage a bit of growth will be those who can manage this adverse environment," said one industrialist, who asked not to be named. LIFESAVER Ruling party lawmaker Jose Vielma cheered the increased tax collection. "With higher tax take it has been possible to alleviate difficult economic moments," Vielma told Reuters. "We must thank the private sector, which has made a sufficient contribution." Analysts put it more bluntly. "Taxes are a lifesaver for the government," said Luis Barcenas, an economist at Venezuelan firm Ecoanalitica. The firm estimates the tax take could be as much as $13 billion this year and that companies are devoting half their earnings to tax payments. The Conindustria survey showed larger businesses do not expect to increase jobs, while medium-sized companies said they could reduce headcount by about 1%. "When you don't have working capital, you stop creating jobs," said one businessperson. Some sources, especially from the retail sector, said they are closing stores with lower sales. "When a customer pays for a product, they are paying for a good portion of the taxes that the merchant is giving to the state," said a businessman from central Venezuela, saying municipal taxes are also weighing heavily on prices. Local manufacturers tend to have factories in more than one municipality, meaning they are often liable to more local taxation than the few remaining international companies in Venezuela, who import products or have limited factories in-country. "For companies with local production the impact is even more critical," said the director of a foreign company, who asked not to be named. Outage-prone public services were heavily subsidized when oil income was generous, but prices have more than doubled in the year to March, according to the Venezuelan Finance Observatory. Inflation, which ended last year at 48%, is expected to reach 200% by the close of 2025. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
a day ago
- Business
- Reuters
Venezuela ramps ups taxes on private sector as Chevron oil exit bites
June 2 (Reuters) - Venezuela's government is increasing taxes and public service charges on the private sector to compensate for declining oil revenue after tighter U.S. sanctions, according to business leaders and analysts, who predict the measures will hinder already struggling private enterprise. Washington in February canceled key licenses for a handful of partners and customers of state oil company PDVSA ( including Chevron (CVX.N), opens new tab, that had allowed them to export Venezuelan oil under U.S. sanction exemptions. It also imposed secondary tariffs on Venezuela's oil buyers. Analysts estimate these actions could reduce the OPEC member's oil income, which was around $15 billion in 2024, by approximately 30%. This anticipated revenue loss has led the government to demand advance tax payments, conduct more audits, levy significant fines, and permit local authorities and public service providers to raise their fees, said a dozen businesspeople. These measures add pressure to a private sector grappling with years of economic crisis, high inflation, and currency controls. Neither the communications ministry, finance ministry nor tax agency responded to requests for comment. President Nicolas Maduro, who in April decreed an economic emergency that allows him to erase tax exemptions, had already asked officials in January to double tax income from $5.2 billion last year. Officials are heeding the call - tax revenues rose by about a fifth in the first quarter. Maduro's government has always rejected U.S. sanctions, referring to them as an "economic war". Businesspeople have held meetings with the government in a bid to have some taxes revised, three sources said, but to no avail. A May survey by the industrial guild Conindustria, which represents producers of food, chemicals, plastics and textiles, found that 77% of businesspeople identified the tax burden as the primary obstacle to their operations. About 60% of those surveyed plan little to no increase in production in the coming months. "Whatever additional tax is paid will come from the working capital," said Luigi Pisella, president of Conindustria. He added that the tax base must be expanded to avoid concentrating the burden on existing businesses. "Those who manage a bit of growth will be those who can manage this adverse environment," said one industrialist, who asked not to be named. Ruling party lawmaker Jose Vielma cheered the increased tax collection. "With higher tax take it has been possible to alleviate difficult economic moments," Vielma told Reuters. "We must thank the private sector, which has made a sufficient contribution." Analysts put it more bluntly. "Taxes are a lifesaver for the government," said Luis Barcenas, an economist at Venezuelan firm Ecoanalitica. The firm estimates the tax take could be as much as $13 billion this year and that companies are devoting half their earnings to tax payments. The Conindustria survey showed larger businesses do not expect to increase jobs, while medium-sized companies said they could reduce headcount by about 1%. "When you don't have working capital, you stop creating jobs," said one businessperson. Some sources, especially from the retail sector, said they are closing stores with lower sales. "When a customer pays for a product, they are paying for a good portion of the taxes that the merchant is giving to the state," said a businessman from central Venezuela, saying municipal taxes are also weighing heavily on prices. Local manufacturers tend to have factories in more than one municipality, meaning they are often liable to more local taxation than the few remaining international companies in Venezuela, who import products or have limited factories in-country. "For companies with local production the impact is even more critical," said the director of a foreign company, who asked not to be named. Outage-prone public services were heavily subsidized when oil income was generous, but prices have more than doubled in the year to March, according to the Venezuelan Finance Observatory. Inflation, which ended last year at 48%, is expected to reach 200% by the close of 2025.
