China abandons Venezuelan oil

Largest energy company, the China National Petroleum Corporation CNPC, is halting from direct patronage of Venezuelan crude as the United States reinforces sanctions against Caracas.

Reporting, Qatar News Agency CNPC said it has changed plans to purchase about five million barrels of Venezuelan oil onto ships this month, following US President Donald Trump intensifying threats against companies that do business with Venezuela.

It is thought to be the first time in 10 years that Beijing has refused to patronize Venezuelan oil, and follows a meeting between CNPC executives and senior US diplomats, a source told Reuters news agency.

Chinese and international media said an interruption in August would not mean a complete break in communication between China and Venezuela over oil.

Washington suspended Venezuelan government assets held in the US in early August. Further guidelines are expected to be issued by the US Treasury, however the Trump administration has been trying to unseat socialist President Nicolas Maduro since at least his 2018 re-election.

Recall that, Trump’s executive order on August 5, did not strictly prohibit non-US companies from engaging in  business with Venezuela’s state-run petroleum company, but did threaten to freeze US assets of any person or company determined to have “materially assisted” the Venezuelan government.