Brief — what happened and why it matters
Bloomberg, citing traders, writes that Chinese refiners, after restricted access to Venezuelan oil, have begun to more actively consider supplies from Canada as an alternative. This is not just a repositioning of tankers — it's a signal of how sanctions and geopolitical actions are reshaping energy supply logistics.
Why Canada — even if it's more expensive
According to Bloomberg sources, Canadian oil costs roughly $8–9 per barrel more compared with Venezuela's Merey, which may deter some refiners. At the same time, the key factor is delivery time: from Vancouver to Qingdao is about 17 days, while a voyage from the Amuay Bay in Venezuela takes around 57 days. For refiners that are less price-sensitive but need stable supplies and quick capital turnover, that is a critical argument.
"China's inquiries about supplies from Canada have increased after recent events — suppliers are looking for grades that are similar to Merey in properties and can reach port faster."
— traders interviewed by Bloomberg
What’s afloat and what the alternatives are
Traders report about 22 million barrels of Venezuelan oil currently in floating storage near Malaysia and China — enough for roughly two months. After those stocks are exhausted, importers will have to look for alternatives: besides Canada, these could include heavy grades from Brazil or fuel oil.
Among the regular buyers of Venezuelan oil Bloomberg mentions Shandong Chambroad Petrochemicals Co., Shandong Dongming Petroleum & Chemical Group and Sinochem Hongrun Petrochemical Co. These companies are now weighing the trade-off between price, delivery time and the technical requirements for processing heavy, high-sulfur feedstock.
Implications for the market and for Ukraine
This story is an example of how political decisions (in particular, the blockade of sanctioned tankers and the detainment of regime leadership) quickly transform supply chains. For the market this means a short-term premium for lighter and closer supplies and a potential oversupply of alternative heavy oil in a few months.
For Ukraine the important signal is of a different kind: allies are demonstrating the ability to reorient energy supplies under political pressure. This raises the value of coordinated sanctions and energy diplomacy — tools that have already proven effective in constraining autocratic regimes.
"This is an example of how rapid logistical reorientation can soften the effect of sanctions while simultaneously changing economic incentives for producers."
— energy market analysts
Conclusion
The situation with Venezuelan oil supplies after U.S. actions (the tanker blockade on December 17, 2025, the capture of regime leadership on January 3 and the trial on January 5) forces the market to choose: pay more for speed and reliability or risk disruptions and a long supply chain. For Ukraine it is a reminder that energy and sanctions policy are part of a security strategy, where results are measured not only by loud statements but by the rerouting of supply lines and investments in critical infrastructure.
