China Tankers Reverse Course from Venezuela Oil Ports

Two China-flagged supertankers en route to Venezuela to load crude oil for debt repayment to Beijing have reversed course and are now sailing back to Asia, according to shipping data from LSEG. The move, reported on Monday, underscores the ongoing challenges facing Venezuela's oil exports amid a U.S. embargo that has halted direct shipments to the country's largest buyer.

The vessels, very large crude carriers named Xingye and Thousand Sunny, had been anchored in the Atlantic Ocean for weeks, awaiting clearance to enter Venezuelan ports. They were part of a dedicated group of three supertankers operating exclusively on the Venezuela-to-China route to transport oil used for servicing Venezuela's debt to China. Neither ship is subject to direct sanctions, but their operators faced uncertainty due to the U.S. blockade and Venezuela's deepening political crisis, which escalated following the U.S. capture of President Nicolas Maduro.

The turnaround comes as Venezuela's state-owned oil company, PDVSA, has not shipped any cargoes to China since last month. Washington maintains that its energy sanctions, imposed in 2019, remain fully in effect, preventing direct exports. Last week, the...