In April, the amount of oil exported increased to 739,400 barrels per day and reached the highest level in three months.
This is 9.6% more than in March. At least 65% of Venezuelan oil was exported to China in April.
This is a very apparent push by China to increase its influence, with a sort of investment in the form of purchasing oil from Venezuela, instead of the massively discounted crude that Saudi Arabia offers.
The same can be observed in the way Beijing has been steadily increasing purchases of Moscow, as Russia is struggling heavily with the economic downturn in the country.
Venezuela is similarly under US sanctions and economic pressure.
At the same time, the United States is accusing China of not fulfilling the terms of the trade agreement, under which it is obliged to purchase a guaranteed volume of US “oil shale” in the amount of $52.4 billion.
It appears that, despite the deal with the US, China is establishing a new pool of oil suppliers for itself, and it is specifically those that appear more willing to assist it in forwarding its geopolitical interests.
The main parameter for selection in this pool is the principle of political loyalty and the proximity of the strategic objectives of the oil exporting states to those of China.
As a result, a new bipolar world is beginning to form in regard to oil purchases.
However, it should be reminded that all strategic alliances in the world began to form around oil, regardless, as such this is nothing new.
Two of the most striking (and still valid) alliances: the energy charter between the United States and Great Britain, the Quincy Pact between the United States and Saudi Arabia.
And all the world wars began with the breakdown of the oil agreements.
Venezuela is also one of the country’s that supports China’s Belt and Road Initiative, and as there are still no significant direct investments, China has pledged to fund numerous projects in the country.
The current standoff between the US and China seems exacerbated, with accusations against US ships in the South China Sea, Washington saying it has evidence that COVID-19 originated in a laboratory in Wuhan, China pushing its interests in every area it can, while the US does the same, amid the economic downturn and the continuing pandemic.