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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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Aljadaan: Emerging Markets Account for 70% of Global Growth

Al-Jadaan speaking to the attendees at the "AlUla Conference for Emerging Market Economies" (Asharq Al-Awsat
Al-Jadaan speaking to the attendees at the "AlUla Conference for Emerging Market Economies" (Asharq Al-Awsat
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Aljadaan: Emerging Markets Account for 70% of Global Growth

Al-Jadaan speaking to the attendees at the "AlUla Conference for Emerging Market Economies" (Asharq Al-Awsat
Al-Jadaan speaking to the attendees at the "AlUla Conference for Emerging Market Economies" (Asharq Al-Awsat

Saudi Minister of Finance Mohammed Aljadaan stressed Sunday that the world economy is going through a “profound transition,” saying emerging markets and developing economies now account for nearly 60 percent of the global Gross Domestic Product (GDP) in purchasing power terms and over 70 percent of global growth.

In his opening remarks at the AlUla Conference for Emerging Market Economies, organized by the Saudi Ministry of Finance and the IMF in AlUla, the minister said these economies have become an increasingly important driver of global growth with their share of global economy more than doubling since 2010.

“Today, the 10 emerging economies in the G20 alone account for more than half of the world growth. Yet, they face a more complex and fragmented environment, elevated debt levels, slower trade growth and increasing exposure to geopolitical shocks.”

“Unfortunately, more than half of low income countries are either in or at the risk of debt distress. At the same time global trade growth has slowed at around half of what it was pre the pandemic,” Aljadaan added.

The Finance Minister stressed that the Saudi experience over the past decade has reinforced three lessons that may be relevant to the discussions at the two-day conference, which brings together a select group of ministers and central bank governors, leaders of international organizations, leading investors and academics.

“First, macroeconomic stability is not the enemy of growth. It is actually the foundation,” he said.

“Structural reforms deliver results only when institutions deliver. So there is no point of reforming ... if the institutions are unable to deliver,” he stated.

Finally, he said that “international cooperation matters more, not less, in a fragmented world.”

Business

Georgieva from AlUla: Growth Still Lacks Pre-pandemic Levels

Kristalina Georgieva speaking to attendees at the second edition of the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat)
Kristalina Georgieva speaking to attendees at the second edition of the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat)
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Georgieva from AlUla: Growth Still Lacks Pre-pandemic Levels

Kristalina Georgieva speaking to attendees at the second edition of the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat)
Kristalina Georgieva speaking to attendees at the second edition of the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat)

International Monetary Fund (IMF) Managing Director Kristalina Georgieva said Sunday that world growth still lacks pre-pandemic levels, expressing concern as she expected more shocks amid high spending and rising debt levels in many countries.

Georgieva spoke at the AlUla Conference for Emerging Market Economies, organized by the Saudi Ministry of Finance and the IMF in AlUla.

The two-day conference brings together a select group of ministers and central bank governors, leaders of international organizations, leading investors and academics to deliberate on policies to global stability, prosperity, and multilateral collaboration.

Georgieva said that the conference was launched last year in recognition of the growing role of emerging market economies in a world of sweeping transformations.

“I came out of this gathering .... With a sense of hope for the pragmatic attitude and determination to pursue good policies and build strong institutions,” she said.

Georgieva stressed that “good policies pay off,” and said that growth rates across emerging economies reached four percent this year, exceeding by a large margin those of advanced economies that are around 1.5 percent.

Business

Saudi Arabia’s flynas, Syrian Civil Aviation Authority Partner to Launch 'flynas Syria'

The new airline will operate commercial air transport services in accordance with approved regulations and standards (flynas)
The new airline will operate commercial air transport services in accordance with approved regulations and standards (flynas)
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Saudi Arabia’s flynas, Syrian Civil Aviation Authority Partner to Launch 'flynas Syria'

The new airline will operate commercial air transport services in accordance with approved regulations and standards (flynas)
The new airline will operate commercial air transport services in accordance with approved regulations and standards (flynas)

Saudi budget carrier flynas has signed an agreement with the Syrian General Authority of Civil Aviation and Air Transport to establish a new commercial airline under the name "flynas Syria," with operations scheduled to begin in the fourth quarter of 2026.

Saturday’s agreement comes within the framework of bilateral cooperation between Saudi Arabia and Syria, as well as the strategic investment agreements between the two countries, coordinated with the Saudi Ministry of Investment and the Syrian General Authority of Civil Aviation and Air Transport.

The new airline will operate commercial air transport services in accordance with approved regulations and standards, meeting the highest safety and aviation security requirements. All licensing and operational procedures will be completed in coordination with the relevant authorities.

The carrier will be established as a joint venture, with 51% ownership held by the Syrian General Authority of Civil Aviation and Air Transport and 49% by flynas.

The new airline will operate flights to several destinations across the Middle East, Africa, and Europe. This expansion aims to bolster air traffic to and from Syria, enhance regional and international connectivity, and meet growing demand for air travel.

"This step is part of our commitment to supporting high-quality cross-border investments. The aviation sector is a key enabler of economic development, and the establishment of 'flynas Syria' serves as a model for constructive investment cooperation,” said Saudi Minister of Investment Khalid Al-Falih.

“This partnership enhances economic integration and market connectivity and supports development goals by advancing air transport infrastructure, ultimately serving the mutual interests of both nations and promoting regional economic stability,” he added.

President of the Syrian General Authority of Civil Aviation and Air Transport Omar Hosari also stated that the establishment of flynas Syria represents a strategic step within a comprehensive national vision aimed at rebuilding and developing Syria's civil aviation sector on modern economic and regulatory foundations.

“This will be achieved while balancing safety requirements, operational sustainability, investment stimulation, and passenger services. The partnership reflects the state's orientation toward smart cooperation models with trusted regional partners, ensuring the transfer of expertise, the development of national capabilities, and the enhancement of Syria's air connectivity with regional and international destinations, in line with global best practices in the air transport industry."

flynas Chairman Ayed Al-Jeaid stated that the company continues to pursue strategies aimed at growth and international expansion, describing the agreement as a historic milestone in the company's journey and a promising investment model in partnership with Syria.

flynas CEO Bander Al-mohanna said the step represents a qualitative leap in the company's strategy and financial performance, highlighting the transfer of the company's low-cost aviation experience to the Syrian market to support regional and international air connectivity.

flynas currently operates 23 weekly flights from Riyadh, Jeddah, and Dammam to Damascus, including two daily direct flights from Riyadh, one daily flight from Jeddah, and two weekly flights from Dammam.

The airline made history on June 5, 2025, by adding the Syrian capital to its network, becoming the first Saudi carrier to resume scheduled flights to Damascus.