Tanker carrying 920,000 bbl of Venezuelan Boscan crude on its way to Malaysia, shipping data says

Tanker carrying 920,000 bbl of Venezuelan Boscan crude on its way to Malaysia, shipping data says

In a strategic move to circumvent U.S. sanctions and reduce logistics costs, traders have been rebranding Venezuelan oil shipments as Brazilian crude. According to Reuters, over $1 billion of Venezuelan oil shipments have been rebranded as Brazilian crude over the past year, with traders using tactics such as spoofing tanker signals to make vessels appear to depart from Brazilian ports [1].

The rebranding allows tankers to sail directly from Venezuela to China, skipping the stop-over in waters off Malaysia. This new route has shortened the voyage by about four days, saving on both ship-to-ship costs and securing bank financing [1]. The practice has enabled China, the world's largest crude importer, to continue receiving Venezuelan oil despite U.S. sanctions.

The sanctions, imposed since 2019, have targeted Venezuelan energy exports to reduce the oil export revenue funding President Nicolas Maduro's government. Despite Maduro's rejection of the sanctions, traders have found ways to bypass them, with Venezuelan crude often being transferred to other ships at sea to disguise its origin before being shipped to China [1].

China's customs data shows that China imported about 2.7 million metric tons of mixed bitumen from Brazil between July 2024 and March 2025, worth $1.2 billion. However, Brazil rarely exports any bitumen blend, and most crude cargoes entering China branded as Brazilian bitumen actually contain Venezuelan Merey crude [1].

The rebranding of Venezuelan oil as Brazilian crude is not without risks. The practice could potentially lead to increased scrutiny from regulatory bodies and may impact the reputation of the companies involved. Furthermore, the effectiveness of the sanctions could be undermined if the rebranding continues.

References:
[1] https://finance.yahoo.com/news/traders-rebrand-venezuelan-oil-china-040858969.html