CARACAS (Multibagger) - Despite the recent disputed presidential election in Venezuela triggering protests and international reactions, the country's oil production and exports are operating normally, sources report. However, shipping delays that have been accumulating since early this year continue to persist.
The electoral process required increased security measures and reduced staff at state-oil company PDVSA, but operations have since returned to normal. Crude production levels remain steady at an average of 922,000 barrels per day in June, according to official figures.
While exports of oil and fuel are facing delays due to slow shipping from the main terminal and the need for ship-to-ship loadings, some fuel imports are also experiencing delays, as per shipping data and sources.
The U.S. government granted a license to Venezuela's oil industry last year, allowing increased exports. However, production levels have not kept up, leading to delays in delivering cargoes to customers, particularly affecting importers in Asia.
Companies receiving Venezuelan crude under U.S. licenses, such as Chevron and Repsol, have experienced shorter delays compared to others.
Despite potential actions in response to the electoral dispute, U.S. officials have stated that individual licenses granted to energy companies operating in Venezuela will not be changed or withdrawn at this time.
Analysis: Despite the political turmoil in Venezuela following the disputed presidential election, the country's oil industry seems to be functioning normally. However, ongoing shipping delays are causing issues for exports and imports. The delays are a result of increased demand for Venezuelan oil, which has outpaced production levels. This situation has particularly affected importers in Asia. While some companies are facing significant delays, others with specific licenses have experienced shorter wait times. The uncertainty surrounding potential U.S. actions in response to the election dispute adds another layer of complexity to the situation. Investors and individuals involved in the oil industry should closely monitor these developments as they could impact global oil markets and trading activities.