Venezuela's October crude exports held flat at 1.08 million bpd

what happened

Venezuela's crude and product exports held steady at 1.08 million barrels per day in October, according to shipping data that Reuters reviewed on Tuesday. Stagnant production and expensive freight have kept some South American grades out of demand, the agency reported.

Compared with September, volumes slipped 0.5 percent, the lowest level since February, yet they remained 21 percent above a year earlier. Shipments to the United States, the biggest buyer of Venezuelan crude, dropped almost 29 percent to roughly 449,000 bpd, while flows to Europe climbed from 86,000 to 235,000 bpd. Chevron lifted its loadings to about 303,000 bpd, while trader-handled cargoes including Vitol and Trafigura declined to roughly 506,000 from 637,000 bpd.

why it matters

The recovery seen earlier this year has stalled as producers prepare investments in drilling and repairs to PDVSA's aging infrastructure, but no extra volume has arrived yet. For oil markets, this means no additional barrels from Venezuela, and heavy South American grades remain less competitive because of freight costs.

market impact

Crude oil: flat Venezuelan exports add no extra supply of heavy grades, a modest factor for Brent

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