Bloomberg: Venezuela’s Biggest Oil Buyer Considers More Expensive Alternative

Chinese oil refiners are considering Canada as an alternative source after access to Venezuelan crude was restricted by a U.S. sanctions campaign, Bloomberg reported, citing traders.

According to the traders, Chinese inquiries for Canadian supplies have increased since early January, and refiners believe Canadian crude grades are among the best substitutes for Venezuela’s Merey blend.

The traders did not specify which companies were the first buyers of Canadian oil, but noted that regular importers of Venezuelan crude – including Shandong Chambroad Petrochemicals Co., Shandong Dongming Petroleum & Chemical Group, and Sinochem Hongrun Petrochemical Co. – will need to secure alternative supplies.

They added that around 22 million barrels of Venezuelan oil stored last week in floating storage off the coasts of Malaysia and China would last for about two months. After that, China will need to turn to Canada or other suppliers.

Canadian crude is priced $8–9 per barrel higher than Venezuelan Merey, which could deter some refiners. However, Canadian grades loaded in Vancouver reach Qingdao in about 17 days, significantly faster than the roughly 57-day voyage from Venezuela’s Amuay Bay.

China has been the largest buyer of Venezuelan oil, benefiting from steep discounts offered by Caracas.

Venezuelan crude is classified as heavy and high-sulfur, meaning it is viscous and contains a high sulfur content – similar to Canadian oil sands crude. Such grades yield large volumes of oil products, including bitumen, when refined. Besides Canadian crude, fuel oil and heavy crude from Brazil are also considered potential substitutes for Venezuelan supplies.

• On december 17, 2025 USA introduced a complete blockade of all sanctioned oil tankers entering or leaving Venezuela's ports.
• On the night of January 3 US military captures Venezuelan dictator Nicolas Maduro and his wife in Caracas.
• The couple was accused of drug trafficking, and on January 5 Maduro appears before the US court. He pleaded not guilty.
• Analysts believe that Venezuela can increase oil production by about several hundred thousand barrels per day within two years, provided political stability and investment by American companies.