The OPEC country exported an average of 770,000 barrels per day in May

WHAT Venezuela’s exports of crude have been holding steady

WHY Higher exports to China have helped offset US sanctions hit

WHAT NEXT Venezuela, sitting atop the world’s largest proven oil reserves, needs to diversify its economy

Venezuelan oil shipments were largely flat in May as increased flows to China helped offset the drop caused by the expiry of US authorisations that had previously allowed limited exports, according to internal PDVSA documents and vessel tracking data, Reuters reported. 

The OPEC nation exported an average of 770,000 barrels per day last month, marginally below April’s 783,000 bpd.

Washington’s decision in March to withdraw export waivers – effective May 27 – ended permissions granted to foreign firms such as US-based Chevron to lift Venezuelan crude under sanctions first imposed in 2019. 

The revocation disrupted deliveries to long-standing buyers in the US and Europe, including shipments to Chevron, which cancelled cargoes amid payment uncertainties.

Still, traders rerouted volumes to intermediaries servicing China, Venezuela’s largest customer.

China took in around 584,000 bpd in May, up from 521,000 bpd the previous month, said Reuters. 

Exports to the US rose slightly to 140,000 bpd, while PDVSA halted supplies to Chevron and India’s Reliance Industries Ltd (RIL). 

The final US-authorised transaction – a swap deal involving France’s Maurel & Prom and trader Vitol – had been completed on schedule.

Boscán heavy crude

PDVSA has also begun independently exporting Boscán heavy crude to China, a stream previously marketed through its Chevron partnership. 

The US firm confirmed its licence had expired but maintained that its Venezuelan operations remained fully compliant with sanctions and disclosure laws.

Despite Chevron’s public stance, speculation is growing over the existence of a low-profile exemption allowing limited activity in Venezuela. 

In an interview with Fox News, Venezuela’s opposition leader María Corina Machado suggested the US had granted a narrow carve-out to safeguard American corporate assets without financially benefiting Nicolás Maduro’s regime.

Critics, including Venezuelan oil union leader Iván Freites, questioned the opacity surrounding Chevron’s continued presence, El Tiempo reported.

Freites accused the company of avoiding transparency on Venezuela-related debts and warned that such backchannel deals could undermine broader efforts to restrict Maduro’s access to hard currency.

Rodriguez: Venezuela must diversify

Meanwhile, Venezuelan Vice President Delcy Rodríguez said the country’s economy had expanded 9.32% in the first quarter of 2025, but warned that growth remains vulnerable due to continued dependence on oil, gas and petrochemical revenues, which have been pressured by falling crude prices, El Impulso reported. 

Speaking at the World Retailers Congress in Caracas, Rodríguez called for a shift toward a more diversified economy, underscoring the need to strengthen domestic oil production and reduce exposure to global commodity volatility.

Rodríguez accused unnamed actors of exploiting economic instability, referencing what she called “dollar mafias” as part of efforts to disrupt recovery. 

She defended President Nicolás Maduro regime’s economic strategy, claiming Venezuela is advancing despite enduring what she described as an “unprecedented international financial suffocation.”

The country faces stiff US sanctions. In May, Washington had ended Chevron's licence to export Venezuelan oil.  

In this context, Rodriguez said protecting foreign currency reserves is essential, with priority given to importing critical goods such as food, medicine and raw materials.

Highlighting the retail sector, she said it accounted for 4.5% of GDP and supported roughly 640,000 jobs.

Retail activity rose 7% in 2024, continuing a trend that has persisted since 2018, even during the pandemic-related downturn.

Chevron licence

Rodríguez also declared that Caracas does not acknowledge any foreign authority revoking licences of international oil firms operating within its borders, following the expiration of Chevron’s operating permit under US sanctions, Infobae reported.

She affirmed on Instagram that Venezuela’s oil production continues unabated across all fields and joint ventures, without differentiation.

She had reiterated a day earlier that the country’s oil assets remain fully operational despite being targeted by the unilateral sanctions from Washington. 

Rodríguez said the government does not require external licences to operate its energy industry, citing the continued – but more limited – presence of companies such as Chevron and Repsol as evidence.

Non-oil exports

Indeed Venezuela’s non-oil exports had surged by nearly 88% in the first four months of 2025 compared to the same period last year, as Nicolás Maduro’s regime intensified efforts to diversify the economy and strengthen trade ties outside the petroleum sector, state-owned broadcaster VTV reported. 

The alleged expansion was led by a broad range of sectors, with rum exports reaching 2mn cases across more than 100 countries, contributing an estimated 3% to GDP. 

Cement shipments also posted gains, with over 15,000 tonnes sold abroad by the state-run Socialist Cement Corporation. In agriculture, the government highlighted fruit exports to Barbados, coffee deliveries to Russia and Europe, and a new mung bean deal with China, tapping into a consumer market of over a billion people.

According to VTV, the country’s wood chip exports also scaled up following improved logistics on the Orinoco River, while shrimp exports – primarily from the coasts of Zulia and Falcón – secured Venezuela a spot among the world’s top ten suppliers, with 60% of output bound for European markets. 

Trade with Colombia picked up in February, though Venezuelan exports remained concentrated in basic materials such as aluminium, fertilisers and chemicals.

Additionally, Venezuela now ranks third in Latin America in cattle genetics exports, supported by a livestock population of 14.5mn and daily milk production of 3.5mn litres. 

The Economic Commission for Latin America and the Caribbean (ECLAC) reported Venezuela had 9.3% GDP growth in the first quarter.