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(Bloomberg) — China has bought some Venezuelan oil that was purchased earlier by the US, according to Energy Secretary Chris Wright.
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“China has already bought some of the crude that’s been sold by the US government,” Wright told the media in Caracas, without giving details. “Legitimate Chinese business deals under legitimate business conditions” would be fine, he said, when asked about joint ventures in the country.
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The global oil market was jolted in January as US forces swooped into Venezuela and seized former President Nicolás Maduro, with Washington asserting control over the OPEC member’s crude industry. Since then, traders have looked for signals about how export patterns may change, and how output may be revived after years of neglect, sanctions, and underinvestment.
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The South American country’s so-called “oil quarantine” was essentially over, Wright said on Thursday. Ahead of the intervention, the US blockaded the country’s oil flows with a vast naval force, and seized several vessels.
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Refiners in China — the largest world’s oil importer — were the biggest buyers of Venezuelan crude before the US move, with the bulk of the imports bought by private processors. Given those flows were sanctioned, they were typically offered with deep discounts, making them attractive to local users.
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China’s Foreign Ministry didn’t have an immediate comment on Wright’s statements.
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After Maduro’s seizure, President Donald Trump said that Venezuela would turn over 30 million to 50 million barrels of sanctioned oil to the US, according to a post on Truth Social. In addition, Wright told Fox News in January that the US would not cut China off from accessing Venezuelan crude.
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Several Indian refiners have bought Venezuela’s flagship Merey-grade crude following the US action, and the government has asked state-owned processors to consider buying more Venezuelan and US oil. Exports have also made their way to other markets, including Israel.
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Some banks expect a revival in Venezuelan output over the medium term. Production could hit 2 million barrels a day within two to three years, Natasha Kaneva, head of commodities strategy at JPMorgan Chase & Co., told a Bloomberg Oil Markets Outlook 2026 event this week.
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In December, Venezuelan supplies totaled about 896,000 barrels a day, according to the Organization of the Petroleum Exporting Countries.
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—With assistance from Yongchang Chin and Dan Murtaugh.
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(Updates to add data on output in final two paragraphs.)
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