Venezuela's Oil Exports Decline in July Despite U.S. Shipments Reaching Seven-Year High
Key Takeaways
- •Venezuela's total crude oil exports declined to 1.16 million barrels per day in July from 1.2 million in June, driven by reduced storage withdrawals.
- •U.S. shipments of Venezuelan crude reached 786,000 barrels per day in July, the highest level since early 2019, up from 284,000 barrels per day in January.
- •Exports to India and Europe both declined in July, indicating a growing concentration of Venezuelan crude flows toward the United States.
- •Since January, Venezuelan oil exports have generated approximately $13 billion in revenue held by the United States, which assumed control of the country's oil industry after Maduro's removal.
- •The Trump administration faces criticism from Democratic lawmakers and economists over a lack of transparency in managing Venezuelan oil funds, with little evidence of economic recovery in Venezuela itself.
Venezuela exported 1.16 million barrels of crude oil per day in July, a slight decrease from June's 1.2 million barrels per day, driven by lower withdrawals from storage, Reuters reported. Despite the overall decline, shipments to the United States during the month increased significantly.
July exports to the United States — Venezuela's largest oil destination — averaged 786,000 barrels per day, the highest level since early 2019. U.S. imports of Venezuelan crude have been climbing steadily since Washington's removal of President Nicolas Maduro in January, rising from 284,000 barrels per day in the first month of the year. The return to near pre-sanction export volumes marks a stark reversal for a country that holds the world's largest proven oil reserves but saw production collapse through years of underinvestment and sanctions.
Exports to other destinations declined in July. Shipments to India fell from 277,000 barrels per day to 178,000 bpd, while deliveries to European importers dropped from 99,000 bpd to 82,200 bpd. The shift underscores how Venezuelan crude flows are increasingly concentrated toward the U.S. market under the new arrangement, even as overall volumes plateau.
Overall global exports have softened as storage withdrawals slow. Venezuela's crude exports had peaked at 1.24 million barrels per day in May.
Since January, Venezuelan oil exports have generated approximately $13 billion in revenue, which is being held by the United States. Washington assumed de facto control of Venezuela's oil industry following Maduro's capture.
In April, Energy Secretary Chris Wright placed the cumulative export figure at 150 million barrels — a number that has grown substantially since. However, controversy surrounds the handling of these funds, as the Trump administration has not disclosed how the money is being used.
The Financial Times reported last month, citing economists, that there is little evidence of economic recovery in Venezuela itself — the stated purpose of U.S. custody of the oil revenue.
"Trump's invasion of Venezuela has been about oil, power and graft from the very beginning, with billions of dollars in Venezuelan oil revenue being controlled by the Trump administration without transparency or safeguards," Democratic Representative Joaquin Castro told the FT, accusing the federal government of keeping legislators uninformed about Venezuelan oil money.
By Irina Slav for OilPrice.com