US Plans to Control Venezuelan Oil Exports as China Reduces Demand

The United States plans to control Venezuelan oil exports, but faces a major challenge: China, the country’s largest buyer, no longer needs the oil. This raises uncertainty over who will absorb Venezuelan supply.

According to statements made by Donald Trump, the United States intends to take control of Venezuela’s oil exports for an undefined period. US companies such as Chevron, Exxon Mobil, and ConocoPhillips are expected to return to the country to rebuild its deteriorated oil infrastructure.

However, a critical issue remains unresolved: demand. Over the past years, China accounted for up to 70% of Venezuela’s oil exports. Recent reports from Chinese state-linked research groups indicate that China’s oil demand has reached, or is close to reaching, its peak.

With electric vehicle adoption accelerating and economic growth slowing, China’s appetite for crude oil is declining, leaving US policymakers searching for alternative buyers in an already oversupplied global market.