situation report

Aug 16, 2019 | 18:01 GMT

1 min read

China, Venezuela: PetroChina Suspends Direct Oil Imports From Venezuela Amid U.S. Sanctions Threat

What Happened: Chinese oil giant PetroChina Ltd. has suspended its direct purchases of crude oil from Venezuela due to U.S. sanctions concerns, Bloomberg reported Aug. 16.

Why It Matters: China, the largest export destination for Venezuelan crude oil alongside India, imported roughly 275,000 barrels per day from the South American country in June. PetroChina's decision to halt its direct purchases of Venezuelan oil comes as China is looking to reduce its exposure to the risk of U.S. sanctions, although the company could still explore ways to indirectly import crude from Venezuela.

Background: U.S. President Donald Trump expanded U.S. sanctions against the Venezuelan government and its state-owned oil company, Petroleos de Venezuela, on Aug. 5.

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