The U.S. government’s decision to impose a 25% secondary tariff on countries purchasing oil or gas from Venezuela has put its key allies and partners under scrutiny, particularly China, the South American nation’s largest crude buyer. In response, Beijing has urged Washington to “stop interfering” in Caracas’ internal affairs.
According to Chinese customs data, Venezuela exported 1.4 million metric tons of oil to China in 2023, making it the Asian giant’s 12th-largest crude supplier. A report from the U.S. Department of Energy states that China received 69% of Venezuela’s oil exports as part of “oil-for-loans” agreements and sanction evasion strategies prior to 2023.
The report also highlights that the China National Petroleum Corporation (CNPC) has provided technical assistance to Venezuela. This, combined with the return of local oilfield service providers and the importation of diluents from Iran, has contributed to an increase in crude production since 2021.
On Tuesday, the Chinese government reiterated its opposition to Washington’s measure, though it has yet to confirm whether it will halt its imports of Venezuelan crude.
India and Spain in the Oil Trade
India, another major buyer of Venezuelan crude, imported 22 million barrels in 2024, according to the Indian Department of Commerce. In January alone, purchases totaled 254,000 barrels per day (bpd), accounting for nearly half of Venezuela’s total exports, which stood at 557,000 bpd. Most of these transactions were handled by the Indian conglomerate Reliance Industries.
Although Venezuelan crude made up less than 2% of India’s total oil imports in 2024, its acquisition was part of the country’s strategy to diversify supply sources and reduce dependence on a single region. Reliance Industries, in particular, owns one of the few refineries in India capable of processing Merey crude, a heavy and high-sulfur Venezuelan oil.
Meanwhile, Spain has also strengthened its energy ties with Venezuela. In 2023, the South American country became Spain’s eighth-largest crude supplier, accounting for 4.7% of total imports, according to the Corporation of Strategic Reserves of Petroleum Products (Cores). In April of last year, Spanish multinational Repsol and Venezuela’s state-owned oil company Pdvsa signed an agreement to expand oil field operations through a joint venture reactivated in December 2023, in which the European company holds a 40% stake.
On Tuesday, the Spanish government warned that if the U.S. imposes tariffs affecting Spanish production sectors, Europe and Spain would respond forcefully to defend their economic interests.
Venezuela’s Current Oil Production
Despite sanctions and market fluctuations, Venezuela’s oil production has remained above one million barrels per day for the second consecutive month. According to an OPEC report published on March 12, production fell by 6,000 barrels per day in February, reaching an average of 1,025,000 bpd—0.5% less than in January, when the country surpassed the one-million-barrel mark for the first time since June 2019.
With the world’s largest proven crude reserves, Venezuela continues to seek alternatives to sustain its exports and circumvent U.S. restrictions, while its key trade partners assess the impact of the new tariffs on their economies.
