Following the US takeover of the Venezuelan oil industry, commodities trading firms were given contracts to market the crude to buyers across the world, including to China.

But Venezuelan crude oil is now being sold at far higher prices than before, with the profits routed through US companies and energy traders.

The higher prices have pushed Chinese refiners out of the market for the heavy crude from Venezuela, and they are shifting their orders to Canada, Russia, and Iran.

Canadian tar sands oil is more expensive than Venezuelan heavy sour, but is similar, and offers far shorter transit times and lower shipping costs.

Chinese energy traders have been instructed to refuse new offers for Venezuelan crude.

Closing scene, Wulingyuan, Hunan

Resources and links:

Reuters, Vitol, Trafigura offer Venezuelan oil to Indian, Chinese refiners for March delivery, sources say
https://www.reuters.com/business/energy/vitol-trafigura-offer-venezuelan-oil-indian-chinese-refiners-march-delivery-2026-01-12/

China replaces US barrels with crude from Canada
https://www.seatrade-maritime.com/tankers/china-replaces-us-barrels-with-crude-from-canada

Trump’s Venezuela oil grab is pushing Chinese refiners to Canada (Not paywalled)
https://calgaryherald.com/business/trumps-venezuela-oil-grab-is-pushing-chinese-refiners-to-canada

Reuters Exclusive: PetroChina holds off from buying Venezuelan oil marketed under US control, sources say
https://www.reuters.com/business/energy/petrochina-holds-off-buying-venezuelan-oil-marketed-under-us-control-sources-say-2026-01-27/

Bloomberg, Trump’s Venezuela Oil Grab Pushes Chinese Refiners to Canada
https://www.bloomberg.com/news/articles/2026-01-08/trump-s-venezuela-oil-grab-is-pushing-chinese-refiners-to-canada

Trump administration demands Venezuela cut ties with US adversaries to resume oil production
https://www.cnn.com/2026/01/07/politics/venezuela-trump-oil-demands

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