Chevron Slashes Venezuelan Crude Price After U.S. Sanctions Shift and Tanker Seizure

Chevron has adjusted its pricing for Venezuelan crude oil, cutting the offered price for heavy crude from $53.20 to $46.70 per barrel—down 12.2%—after a PDVSA-owned tanker was seized by U.S. Customs and Border Protection in late November. The vessel, identified as the MV Nueva Esperanza, was detained near the Florida coast amid allegations of sanctions evasion, prompting the energy giant to reassess risk exposure in its Venezuelan supply commitments. The pricing cut aligns with broader market dynamics following the U.S. Department of the Treasury’s October 18 decision to partially lift certain sanctions on Venezuela’s state-owned oil company, Petróleos de Venezuela, S.A. (PDVSA), in exchange for political reforms and transparency measures. The move enabled PDVSA to resume exports to select international buyers, with initial shipments reaching refineries in India and China in November. Despite the loosening of restrictions, the tanker seizure has created volatility. The incident marks the first major enforcement action against a Venezuelan oil shipment since the policy shift and has prompted other major traders to reassess exposure to Venezuelan crude. As a result, benchmark Brent futures have seen a 2.3% spike in volatility over the past two weeks, while the spot price for Venezuelan heavy crude has dropped below $47 per barrel. Chevron’s revised pricing influences other traders and refiners, particularly those in the U.S. Gulf Coast and Europe, who are now evaluating whether to accept Venezuelan crude at lower terms. The company’s decision reflects a cautious approach amid uncertain regulatory enforcement, even as Venezuela’s production has risen to 1.8 million barrels per day in December—its highest level since 2019.