Marianna Pararaga and Mircely Guianipa

(Reuters] Venezuela’s crude oil exports decreased by 8% in April compared with the month before due to delays caused by poor grades of crude oil and inadequate oil upgrading capacities. This was according to data and documents obtained from vessel monitors on Thursday.

The U.S. sanctioned Venezuela has recovered some of its lost production, but oil shipments are volatile. They bounced around 200,000 barrels per hour (bpd), in just a few months, as Venezuela’s ability to convert its heavy crude into exportable oils has fluctuated.

PDVSA, a state-owned oil company, and its joint ventures, exported an average 644,870 bpd crude and refined products to China last month. According to PDVSA internal loading schedules, and Refinitiv Ekon tanker tracking data, more than 70% of the shipments went to China direct or through transshipment hubs, like Malaysia.

PDVSA reported that there were high inventories in diluted crude oil. This was compared to the 1.3 million barrels stored of Merey which is the most sought-after grade among Asian refiners.

According to it, the company tried to restart Petromonagas crude upgrading plant to boost output of high quality grades.

IRAN SWAPS

According to one schedule, the April shipments contained a 1.99 million barrel shipment of Merey 16, heavy crude oil aboard the Iran flagged tanker Dan. As part of an agreement to supply PDVSA with much-needed diluents, the ship had entered Venezuelan waters in February. It was carrying Iranian condensate.

According to TankerTrackers.com, another Iranian tanker, Derya docked at Venezuela’s Jose port this week. The vessel is set to release approximately 2.1 million barrels condensate, as PDVSA had been expecting since March.

Javad Owji (Iran’s Oil Minister) met this week with Nicolas Maduro, Venezuelan President, in Caracas for talks about possible agreements. The two countries, sanctioned jointly by Washington have forged closer relations through oil swaps as well as the provision of food and refining equipment to Venezuela.

The data shows that Venezuela exported 186,000 barrels of residual fuel oil per day and 240,000 metric tons of petroleum coke.

PDVSA and other state corporations have been increasing exports of fuels and products to Venezuelan ports, despite the fact that it is difficult to find oil tankers.

South American’s country doubled its oil exports last month to Cuba. Cuba is another important political ally. Last year, fuel shortages have been caused by a lack of gasoline and diesel lines. The data revealed that Venezuela shipped almost 70,000 barrels per day of crude oil, diesel, gasoline oil, fuel oil and petroleum coke to Cuba.