The Strategist

Chinese CNPC stops buying Venezuelan oil

08/19/2019 - 12:18

The largest customer of the Bolivarian Republic fears US sanctions.

The Photographer
The Photographer
China National Petroleum Corp., the largest buyer of Venezuelan oil, suspended August shipments following introduction of recent US sanctions against South American exporters. This was reported by Reuters with reference to two senior sources in Beijing. 

Recall that on August 5, Washington tightened sanctions against Caracas. The White House has blocked property of Venezuelan authorities in the jurisdiction of the United States. In addition, the United States is blocking the Venezuelan assets. The Central Bank of the country and the state oil company PDVSA are also under the sanctions.

"Trump's decree contains a directive on subsequent sanctions to be announced by the US Treasury... CNPC is concerned that the company is likely to suffer from secondary sanctions," a source told the agency. The CNPC itself did not comment on the situation.

At the same time, a source in the division of the largest Chinese energy company Chinaoil told Reuters that all this was known in advance. "We were told that Venezuelan oil will not be loaded in August. We don’t know what will happen next," the company commented.

According to Reuters' sources, CNPC will wait for further signals from the US Treasury before planning further purchases of Venezuelan oil.