Bloomberg Economics revealed today (Tuesday) that Venezuela has been sending crude oil to Israel for years, marking a marked shift in the trajectory of Venezuela’s energy exports following the country’s recent political turmoil and the isolation and arrest of Venezuelan President Nicolás Maduro by the United States.
The crude was shipped to Bazan Group, Israel’s largest oil refiner and operator of the main refinery in Haifa, the agency said, citing people familiar with the deal on condition of anonymity.
The agency said the shipment represents a rare return of Venezuelan crude oil to the Israeli market after a hiatus that lasted more than a decade as a result of strained political relations between the two countries under former President Hugo Chávez and continued relations between the two countries under his successor President Nicolas Maduro.
Venezuela, which has the world’s largest proven oil reserves, has seen its production and exports collapse over the past decade due to U.S. sanctions, mismanagement, lack of investment and deteriorating infrastructure in the oil sector.
Bloomberg reports that with the arrest of President Nicolás Maduro, Venezuela’s oil export policy has begun to show significant signs of opening up, as transitional authorities or responsible parties are now seeking to reestablish trade relations with various markets, including those that have long been outside Venezuela’s export zone.
The shipment comes as part of Venezuela’s attempt to regain its share in the international market after its oil exports have fallen sharply in recent years, leaving the country in urgent need of cash flow to cover its basic needs.
There has been no official comment from the Venezuelan government or Israel’s Bazan Group regarding the deal, and exact details such as the size of the shipment, quality of the oil, and price have not yet been released.
Bloomberg News revealed today (Tuesday) that Venezuela has sent crude oil to Israel for the first time in years. This marks a major shift in the trajectory of Venezuela’s energy exports following the country’s recent political upheaval and the isolation and arrest of Venezuelan President Nicolas Maduro by the United States.
The crude will be shipped to Israel’s largest oil refiner, Pazan Group, which operates the main refinery in Haifa, the agency said, citing people familiar with the deal on condition of anonymity.
The agency noted that the shipment represents a rare return of Venezuelan crude oil to the Israeli market after a hiatus of more than a decade due to strained political relations between the two countries under President Hugo Chávez’s term and the government of his successor Nicolas Maduro.
Venezuela has the world’s largest proven oil reserves, but has experienced a significant drop in production and exports over the past decade due to U.S. sanctions, mismanagement, lack of investment and aging infrastructure in the oil sector.
As reported by Bloomberg, the arrest of President Nicolás Maduro has begun to show significant signs of opening up in Venezuela’s oil export policy, as transitional authorities and currently responsible parties seek to rebuild trade relations with diverse markets, including those that have long been outside Venezuela’s export zone.
The shipment was made as part of Venezuela’s attempt to regain its share in the international market after oil exports fell sharply in recent years amid an urgent need for immediate cash flow to meet Venezuela’s basic financial needs.
There has been no official comment from the Venezuelan government or the Pazán Group regarding the deal, and exact details such as the size of the shipment, the quality of the oil, and the price have not been disclosed.
