At least two sanctioned tankers have recently made it to Venezuela and more are on their way as the Maduro regime seeks to keep selling crude despite the U.S.’s blockade of sanctioned vessels, a new report detailed.
Reuters noted that two other vessels not affected by sanctions are also approaching the country’s coast. They are part of a fleet used by China and Venezuela to pay debt service with crude at discounted prices.
In another passage of the report, Reuters said that the only loaded vessels departing the country are Chevron’s, which Washington has authorized to continue operating, and smaller ones carrying oil byproducts and petrochemicals.
Another report, this one by Bloomberg, said the Maduro regime has begun shutting oil wells as it runs out of storage room due to the blockade. Concretely, Caracas is seeking to reduce production in the Orinoco Belt by at least 25% to half a million barrels a day. The figure amounts to 15% of the country’s daily output of 1.1 million of barrels a day.
The plan, the outlet added, is shutting wells in the most extra-heavy crude division and then move to the rest. The decision appears to confirm that the Trump administration’s strategy of putting pressure on the country’s source of revenue is having an impact.
Reuters reported earlier this month that the White House ordered military forces to focus on enforcing a “quarantine” of tankers off the Venezuelan coast for the next two month.
A White House official told the outlet that while “military options still exist, the focus is to first use economic pressure by enforcing sanctions to reach the outcome the White House is looking.”
“The efforts so far have put tremendous pressure on (authoritarian President Nicolas) Maduro, and the belief is that by late January, Venezuela will be facing an economic calamity unless it agrees to make significant concessions to the U.S.,” the official added.
Originally published on Latin Times
