African oil producers have gained a foothold in Latin America at Venezuela’s expense, says Reuters
Data collected by the news agency showed that a recent drop in Venezuela’s crude oil exports had provided an opportunity for African producers to sell to clients in the previously impenetrable Western Hemisphere market.
Official data revealed that overall Venezuelan exports fell by 100,000 bpd to 2.33mn bpd in 2014, with internal documents from state oil company PVDSA revealing the drop to have been most pronounced in the Caribbean and Latin America.
At the same time, Reuters Dirty Tanker Fixtures data revealed that more than eight million barrels of African crude oil were exported to South America in the first two months of 2015 — roughly double those in the same period last year.
The drop in Venezuelan exports is partially driven by a slump in production, caused in turn by a recent exodus of skilled oil workers.
African oil is lighter and more expensive than the heavy ‘sour’ oil typically produced by the Andean nation, but the recent drop in global price of crude has meant that it is now a feasible alternative for Venezuela’s neighbours.
