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PetroChina Holds Off from Buying Venezuelan Oil

A man walks past a mural depicting an oil pumpjack on a Venezuelan flag in Caracas on January 15, 2026. (AFP)
A man walks past a mural depicting an oil pumpjack on a Venezuelan flag in Caracas on January 15, 2026. (AFP)
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PetroChina Holds Off from Buying Venezuelan Oil

A man walks past a mural depicting an oil pumpjack on a Venezuelan flag in Caracas on January 15, 2026. (AFP)
A man walks past a mural depicting an oil pumpjack on a Venezuelan flag in Caracas on January 15, 2026. (AFP)

State-owned PetroChina has told its traders not to buy or trade Venezuelan crude since Washington ​took control of the OPEC producer's oil exports this month, two trading executives familiar with the situation said.

The listed unit of Chinese major CNPC was the largest single offtaker of Venezuelan oil until early 2019, when it halted imports after US President Donald Trump imposed sanctions on Venezuela's oil sales during his first presidential term.

PetroChina's decision to refrain from buying as it assesses the situation is further evidence that Venezuelan oil supply to China, which was its biggest customer, will remain tight and nudge Chinese buyers towards Canada, Iran and Russia ‌instead.

The trading executives ‌sought anonymity because the matter is sensitive.

PetroChina, the parent firm ‌of ⁠which ​is ‌a major investor in Venezuela's oil sector through the Sinovensa joint venture with PDVSA, did not respond to a request for comment.

The world's biggest oil importer, China has condemned Washington's move to redirect Venezuelan oil exports to the US and away from Beijing.

TRADING HOUSES MARKET VENEZUELAN OIL

Trading houses Trafigura and Vitol began marketing Venezuelan oil this month after an agreement between Caracas and Washington for the US to control 50 million barrels after its January 3 capture of President Nicolas Maduro, with ⁠proceeds going to a US-supervised fund.

Trump said the United States has also seized oil on board Venezuelan tankers for processing in ‌US refineries.

Vitol and Trafigura have sold Venezuelan crude to ‍refiners including US-based Valero and Phillips 66 ‍and Spain's Repsol and have also approached Indian and Chinese refiners, including PetroChina, for possible sales, Reuters ‍has reported.

However, one of the trading executives said PetroChina traders were told not to touch the oil until further notice from headquarters.

UNCOMPETITIVE PRICES

In addition to concerns around US control of Venezuelan oil, offers from traders for the oil are not competitive with other grades such as Canadian crude, according to the ​second trading executive.

Discounts for Venezuelan heavy crude Merey delivered to China have narrowed by about $10 a barrel since December, traders said, deterring purchases.

Vitol has offered Venezuelan ⁠oil to Chinese buyers at discounts of about $5 per barrel to ICE Brent for April delivery, trade sources said. That compares with trades in December done at a discount of about $15 a barrel for cargoes that left Venezuela before the US blockade.
Vitol did not immediately respond to a request for comment.

OIL FOR DEBT

PetroChina is also assessing the potential impact of any imports under Venezuela's debt-for-oil program with China, the second executive said.

Caracas has used oil to repay billions of dollars in loans to Beijing in debt-for-oil deals, but sources told Reuters this month that redirecting crude to the United States could mean reallocating cargoes originally bound for China.

Traders and analysts expect Chinese crude imports from Venezuela to slump, starting in February.

While China is the biggest buyer of Venezuelan crude, ‌the oil accounted for only about 4% of its oil imports, mostly bought by small independent refiners known as teapots.

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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.

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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.

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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.