December 16, 2025 – A large amount of Venezuelan crude oil stored on tankers at sea is creating a safety net for Chinese refiners, who are the main buyers. This stockpile could help them if the US increases tensions with Venezuela and impacts oil exports.

Currently, there are just over 20 million barrels of oil on ships, marking the highest level in over three years. This is a rise from around 18 million barrels earlier this month, according to data from Kpler. Many of these tankers are located in Asian waters, making it easier for refiners to access them.

The US recently seized a supertanker off the coast of Venezuela, which has led to uncertainty about future exports. However, loading has continued with the help of ghost ships. Officially, China has not imported Venezuelan oil since March, but data from third parties shows that shipments to China have remained strong this year.

Independent Chinese refiners, known as teapots, are major buyers of Merey oil from Venezuela. This heavy crude is often used for making bitumen for road paving and is offered at a significant discount compared to similar oils, making it appealing for processors facing tight margins.

Additionally, a slowing Chinese economy, which is affected by a long-term downturn in the property market, is providing some relief. Bitumen futures in Shanghai are currently at their lowest point in four years, indicating weak physical demand.

According to Muyu Xu, a senior crude analyst at Kpler, “China is unlikely to experience a supply crisis until February or even March” if the US tightens its grip on Venezuela's oil exports following the recent tanker seizure. However, Xu mentioned that it will be challenging for Chinese refiners to completely replace Venezuelan shipments.