Venezuelan Oil Exports Surge with VLCC Charters, Eye India for Deliveries

For the first time since a supply deal between Caracas and Washington was established, Venezuelan oil exports are about to get a significant boost with the chartering of very large crude carriers (VLCCs). Sources and shipping data indicate these massive tankers, capable of transporting up to two million barrels each, are expected to reduce costs and increase delivery speeds to India, a major market for Venezuela's crude.

Major trading firms Vitol and Trafigura have already chartered multiple VLCCs for March loading at Venezuela’s key oil terminal, Jose. This development comes alongside shipping data showing that another supertanker is on its way to Venezuela, suggesting a strategic decision to move larger shipments as U.S. sanctions that blocked such exports in recent years ease.

These moves aim to address the logistical and financial challenges faced by traders of Venezuelan crude, previously transported mainly in smaller vessels. The recent chartering signals a broader effort to reintegrate Venezuelan oil into the global market, particularly focusing on diversifying its customer base towards India, amid shifting geopolitical and economic trends.