More than $1 billion worth of Venezuelan oil has been sold to China under the guise of Brazilian origin over the past 10 months, according to a Reuters investigation that cites cargo tracking data and anonymous industry sources.
The strategic rebranding of the crude oil has significantly reduced transportation costs for Venezuela and enabled traders to bypass U.S. sanctions, the report noted. Previously, traders relied on ship-to-ship transfers at sea to obscure the oil’s origin. Now, according to data from TankerTrackers cited by Reuters, vessels are manipulating their location signals to falsely indicate departure from Brazilian ports instead of Venezuelan ones.
Chinese customs data shows that between July 2024 and March 2025, China imported approximately 67,000 barrels per day of mixed bitumen allegedly from Brazil. However, Brazil’s state oil company Petrobras does not export bitumen to China.
“What we export to China is mainly crude oil from the pre-salt, it’s not bitumen,” Petrobras CEO Magda Chambriard said at a recent industry event.
Venezuela, on the other hand, is known for its heavy crude, particularly the Merey blend. This crude is commonly sold to independent Chinese refineries—often referred to as “teapots”—which exploit the lack of government quotas on bitumen imports. By altering the certificates of origin, Venezuelan crude is being passed off as Brazilian and exported under that label to evade sanctions.
Meanwhile, the United States has intensified its pressure on Caracas. Last month, former President Donald Trump announced that any nation purchasing Venezuelan oil or gas would face a 25% secondary tariff on its trade with the U.S.
In a further blow to Venezuela’s oil sector, the U.S. government revoked Chevron’s license to operate in the country and canceled several scheduled shipments. As a result, Venezuela’s oil exports dropped by 20% in April compared to March, falling to roughly 700,000 barrels per day—the lowest level in nine months.