China suspends the import of Venezuelan oil

China suspends the import of Venezuelan oil

Under the dual influence of the escalation of US sanctions and the intensified domestic turmoil in Venezuela, Venezuela and China have stopped the crude oil trade for ten consecutive years.

Caijing reporter learned from many industry insiders that China National Petroleum Corporation (CNPC) has decided to stop importing crude oil from Venezuela. Earlier, foreign media reported that PetroChina stopped importing crude oil from Venezuela since August.

The relevant person in charge of PetroChina told the Caijing reporter that he did not respond to and comment on the above news.

PetroChina is currently the only Chinese company to import oil from Venezuela. Its China United Petroleum Co., Ltd. is the platform responsible for the specific docking of Venezuelan oil trade.

In response to the argument that the foreign media PetroChina is related to the escalation of sanctions against Venezuela in the United States, Guo Jiaofeng, a researcher at the Institute of Resources and Environmental Policy of the Development Research Center of the State Council, told the Caijing reporter that China’s cessation of imports was mainly due to the intensification of domestic turmoil in Venezuela. The country is no longer able to maintain its export capacity to China.

According to the statistics of the Ministry of Commerce, the bilateral trade in goods between China and Venezuela was about 8.54 billion U.S. dollars in 2018. In the first three months of this year, the bilateral trade in goods was about 1.97 billion U.S. dollars. Venezuela is China’s seventh largest trading partner and the second largest source of crude oil imports in Latin America. Oil trade plays an important role in bilateral trade.

In the past three years, the proportion of Venezuela’s crude oil in China’s total imports of crude oil has fluctuated between three and five percent. According to data from the commodity trading service provider Jin Lianchuang, China imported 5.19% of the total imports from Venezuela in 2017, which was the eighth largest source of imports in the year; 3.6% in 2018 and 4.08% in the first half of 2019. They are the ninth largest source of imports.

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