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Two China-Flagged Supertankers Turn Back From Venezuela Under U.S. Oil Embargo

The reversals signal that stepped-up enforcement is deterring debt-for-oil pickups bound for China.

Overview

  • LSEG tracking shows the very large crude carriers Xingye and Thousand Sunny reversed course after weeks at anchor and are now heading back to Asia.
  • The ships are part of a small group dedicated to the Venezuela–China route used to service loans with crude deliveries.
  • Both vessels had been awaiting instructions to load cargoes earmarked as debt repayments to China, according to shipping and industry reports.
  • Washington last week announced a $2 billion operation to move up to 50 million barrels from Venezuelan storage while stating the embargo remains in effect, and China has not received Venezuelan cargoes since last month.
  • Recent U.S. actions — including tanker seizures and new blacklistings of firms and vessels tied to Venezuela’s oil trade — have heightened legal, insurance and operational risks for carriers.