Page 4 - LatAmOil Week 38

LatAmOil COMMENTARY LatAmOil

(Photo: Orinoco Tribune)

Venezuela and Iran

take the next step

The latest tankers to bring Iranian fuel to Venezuela have also loaded up with crude oil for export

VENEZUELA’S oil industry has deteriorated If they continue to do so, the US government
significantly since January 2019, when the US is likely to react.
WHAT: government imposed sanctions on PdVSA,
An Iranian tanker has the national oil company (NOC). The signs of Three fleets
loaded up with Merey-16 decline have been obvious – falling production Iran has sent three tanker fleets to Venezuela so
crude for export. levels, reduced refinery throughput and wide- far this year, according to press reports.
spread fuel shortages. The first fleet consisted of five vessels, all
WHY: Nevertheless, Venezuela’s government has filled with Iranian gasoline. These ships arrived
The move is sure to irk remained defiant, declaring its unwillingness to at a Venezuelan port in late May and early June
the US government, which give in to the US campaign to topple the social- and succeeded in discharging their cargo. They
has discouraged trade ist government of President Nicolas Maduro. It then departed the South American country and
with both Tehran and has also turned to Iran, which is also under US went on to their next assignment.
Caracas. sanctions, for help. The second fleet consisted of four ships.
That help has taken various forms, including Again, all were loaded with Iranian gasoline.
WHAT NEXT: but not limited to shipments of Iranian fuel to These vessels never arrived in Venezuela;
Washington may step up Venezuela by tanker and deliveries of Iranian instead, they were confiscated by US officials
enforcement of sanctions refinery parts and equipment to Venezuela by at sea in mid-August and then redirected to a
and seize more Iranian
cargoes. plane. Within the last week, though, the parties US port. Information posted on shipping traffic
have expanded the range of joint activities to websites indicates that all four have unloaded
include Iranian-assisted exports of Venezuelan their cargoes and moved on to their next
crude oil. assignments.

P4 www. NEWSBASE .com Week 38 24•September•2020