Supertankers sailing to pick up Venezuelan oil for China make u-turn

Two China-flagged supertankers that were sailing to Venezuela to pick up debt-paying crude cargoes amid the US oil embargo on the OPEC country have made u-turn and are now heading back to Asia, LSEG shipping data showed on Monday.

Following the US announcement last week of a $2 billion deal to export up to 50 million barrels of Venezuelan oil stuck in storage, US president Donald Trump said China would not be deprived of Venezuela’s crude.

But the Asian country, the first market of the South American nation’s oil, has not received any cargoes since last month as Washington says the embargo remains in force.

The very large crude carriers Xingye and Thousand Sunny had remained anchored in the Atlantic Ocean for weeks, waiting for directions amid the blockade and Venezuela’s political crisis, triggered by the US capture of President Nicolas Maduro.

The vessels are part of a group of three supertankers that only cover the Venezuela-China route to carry crude that pays Venezuela’s debt service to the Asian country.

The loans that are part of Venezuela’s overall debt to China, which used to be its first lender. Shortly after Venezuela was put under US energy sanctions in 2019, China granted a grace period to receive capital payments and negotiated a temporary deal with Caracas so debt service would be compensated with crude cargoes.