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The blockade on tankers ordered by Trump could put at risk the rising Russian naphtha imports to Venezuela

Market sources say that the U.S. president Donald Trump has ordered a ban on?all sanctioned tankers' entering and exiting Venezuela.

Washington announced its latest move on Tuesday to increase pressure on Nicolas Maduro’s government through the imposition of a blockade.

Venezuela uses naphtha as a diluting agent for its heavy crude oil to make it easier to transport. In July, it began importing naphtha in Russia after U.S. sanctioned cut off supplies to its former American suppliers.

Due to the fact that Russia is using sanctioned ships to deliver its naphtha to Venezuela, traders have warned these vessels could be redirected elsewhere in search of new buyers. The Benin-flagged Boltaris tanker, which had around 32,000 metric tonnes of Russian naphtha destined for Venezuela, redirected late last week to Europe, without completing its discharge, according to LSEG data. Since the European Union embargo against Russian oil products went into effect in February 2023, Russia has exported the majority of its naphtha. India, Taiwan, and Brazil are among the top buyers of naphtha, mainly for blending into gasoline. After the U.S. imposed sanctions related to Ukraine on Russia's biggest oil companies last October and pressured India to cut Russian oil imports to a minimum, the number of Russian ports that loaded naphtha to asia dropped by 15% to 800,000 tonnes, according to LSEG data and market sources.

Contrariwise, shipments into Latin America increased. According to?data, the number of naphtha exports from Russian ports into Venezuela increased in November, jumping to 190,000. metric tons, up from 35,000 tons the previous month.

Several tankers remain on the road, and some of these cargoes are already discharged. According to December shipping data, at least 100,000 tonnes of Russian naphtha were destined for Venezuela.

(source: Reuters)