Venezuela Cannot Find Vessels to Ship Its Oil
Exports of sanction-hit Venezuelan oil now face a new concern: a shortage of vessels willing to transport crude produced by the regime of President Nicolas Maduro.
Shipowners are avoiding transporting Venezuelan oil for fear of being sanctioned and losing insurance coverage on their vessels.
The lack of vessels may take a toll on oil exports which, according to data compiled by Bloomberg, was already at a 16-year low in August.
At least one cargo of Venezuelan oil was deferred to October as the buyer could not find a vessel to load.
Unable to find supertankers to carry its oil to Asia, the OPEC producer is resorting to smaller, costlier vessels to deliver overseas.
On the 5th August President Trump signed an order authorising sanctions on anyone helping the Maduro regime amid a humanitarian crisis which has caused four million Venezuelans to flee the country.
The Shipowners’ Club, provider of insurance to international shipping companies, advised its members to “exercise caution” if engaging with Venezuela. The group says if a member is sanctioned, its property can be blocked and the club may terminate or suspend insurance coverage.
Source: Rigzone