Venezuela’s Oil Exports Fall Even as U.S. Shipments Hit Seven-Year High

Venezuela's oil exports experienced a slight decrease in July, with daily exports of crude oil reaching 1.16 million barrels, down from 1.2 million barrels in June, according to Reuters. The decrease was attributed to lower withdrawals from storage, while exports to the United States, which has been Venezuela's biggest oil destination, averaged 786,000 barrels daily, marking the highest level since early 2019.

The surge in U.S. imports from Venezuela can be traced back to the ousting of President Nicolas Maduro in January. Exports to other destinations, including India and Europe, saw a decline, with India reducing its imports from 277,000 barrels daily to 178,000 barrels, and European importers from 99,000 barrels daily to 82,200 barrels.

Global exports, however, have been on a downward trend due to a slowdown in withdrawals from storage, as reported by Reuters. The peak in Venezuelan oil exports was recorded in May at 1.24 million barrels daily. Since January, Venezuelan oil exports have generated approximately $13 billion, primarily held by the United States, which took control of the country's oil industry following Maduro's capture.

Energy Secretary Chris Wright had earlier estimated the export figure to be around 150 million barrels in April, which has since grown substantially.

However, there is a lack of transparency surrounding the use of the oil money by the Trump administration. Critics, such as Congress Democrat Joaquin Castro, argue that there is little evidence of economic recovery in Venezuela, which was the intended purpose of the U.S. custody of the oil money. Castro accused the federal government of keeping legislators in the dark about the use of Venezuelan oil revenue, emphasizing that the invasion of Venezuela has been driven by oil, power, and graft since the beginning, with billions of dollars in revenue controlled by the Trump administration without proper safeguards.