Chinese buyers have rejected offers to purchase Venezuelan crude amid US sanctions that constrain exports and push up prices. According to Bloomberg, Merey crude was being offered at a discount of $13 per barrel compared to ICE Brent, substantially higher than a month earlier, when the discount was $15. Supply disruptions forced sellers to raise prices for Merey, making it less attractive to Chinese importers.
China has traditionally been the largest purchaser of Venezuelan oil, which it uses extensively to produce bitumen for road surfacing. A drop in demand from the mainland adds further pressure on Venezuela’s exports by narrowing its market. US sanctions on tankers carrying Venezuelan crude and a campaign against the shadow fleet have reduced delivery options and raised logistical costs.
China’s refusal reflects plain economic logic. As the discount narrows, Venezuelan crude becomes less competitive compared to alternative sources. For Venezuela, losing its biggest buyer deepens the economic crisis tied to falling export revenues and constraints on oil sales.
