China snaps up US-seized Venezuelan crude

China has purchased Venezuelan crude oil that was sold by the US following Washington’s seizure of President Nicolás Maduro in January and a number of the country’s oil tankers, US Energy Secretary Chris Wright said on February 13, signalling major shifts in global crude trade flows.

“China has already bought some of the crude that’s been sold by the US government,” Wright told reporters in Caracas during the highest-level US energy visit to the country in nearly three decades, according to Bloomberg. He did not disclose volumes or pricing, but said that “legitimate Chinese business deals under legitimate business conditions” would be acceptable when asked about potential joint ventures in Venezuela’s oil sector.

China’s foreign ministry said it was not familiar with Wright’s comments. Spokesman Lin Jian told a regular briefing in Beijing that he had no information to provide on the matter.

Global oil markets were jolted in January when US forces moved into Venezuela and detained Maduro, with Washington asserting control over the OPEC member’s crude industry and export system. Ahead of the intervention, the US had tightened enforcement of sanctions, including maritime restrictions and vessel seizures aimed at curbing oil shipments that bypassed US measures.

Since January, Washington has overseen sales of Venezuelan crude on international markets, with proceeds reportedly placed under US supervision. Wright said Venezuela’s so-called “oil quarantine” was effectively over, signalling a shift from broad restrictions towards managed exports under US oversight.

China had been one of the largest buyers of Venezuelan oil before the US intervention, with independent refiners in particular taking discounted cargoes as sanctions limited Caracas’s customer base. China is the world’s largest crude importer, and Venezuelan heavy grades such as Merey have historically suited some of its refinery configurations.

India has also emerged as a buyer of Venezuelan barrels under the new arrangement, according to officials familiar with the trade flows. New Delhi has in recent years increased purchases of sanctioned or discounted crude, including from Russia, reshaping traditional supply patterns.

Venezuela’s oil industry has been in long-term decline following years of underinvestment, sanctions and operational disruptions. Production, which once exceeded 3mn barrels per day, has fallen to roughly 1mn bpd in recent years, according to industry estimates. The country holds the world’s largest proven crude reserves, concentrated in the Orinoco Belt, but output has struggled to recover despite periodic sanctions relief.

During his visit, Wright met officials linked to Venezuela’s interim administration and toured facilities operated by US major Chevron Corporation in partnership with state oil company PDVSA. US officials have signalled interest in boosting production through investment and technical support, although timelines remain unclear.

China and Russia had previously provided financing and operational support to Caracas in exchange for oil shipments. Analysts say any restructuring of export flows will affect not only Venezuela’s fiscal outlook but also broader oil market balances, particularly if production rises materially from current levels.

For Beijing, the purchases underscore a pragmatic approach to energy security, prioritising supply diversity and price over political alignment. For Washington, the ability to channel Venezuelan crude through supervised sales represents both leverage and a test of how far it can reshape global oil trade without destabilising markets.