Venezuelan Oil in Floating Storage Skyrockets to 29 Million Barrels
The volume of Venezuelan oil in tankers at sea has surged to over 29 million barrels, up from 20 million barrels at the start of the week, according to Bloomberg (https://www.bloomberg.com/news/articles/2026-01-09/venezuelan-oil-being-held-at-sea-swells-after-us-intervention). This dramatic increase is attributed to the U.S. intervention aimed at removing Nicolas Maduro from power in Venezuela. The U.S. captured Maduro in a weekend operation, flying him to New York to face drug-trafficking charges, and secured 'total access' to Venezuela's oil resources from the country's authorities.
The U.S. has imposed a blockade on Venezuela, maintaining a quarantine on its oil, despite holding the world's largest proven oil reserves. U.S. forces have been actively chasing and seizing sanctioned tankers, including a Russia-flagged vessel in the North Atlantic after a dramatic pursuit near Venezuelan waters. This escalation in enforcement has led to a significant buildup of Venezuelan oil at sea, with a nearly 10-million-barrel increase over the past week, particularly in Asian waters.
China, a major buyer of Venezuelan crude, has reduced its intake due to the shrinking discount between Brent and Venezuela's Merey crude. Chinese oil buyers are now facing the possibility of reduced supply as the discount has decreased from $15 per barrel to $13 per barrel. Despite the U.S. indicating it won't cut off China from Venezuelan oil, independent Chinese refiners are bracing for potential supply shortages.
The situation highlights the complex dynamics of global oil trade and the impact of political interventions on energy markets. As the story unfolds, it raises questions about the future of Venezuelan oil exports and the potential consequences for both the country and its major buyers.
