The decision to operate with Chinese currency was announced last week as a way for the country to overcome the negative impact of financial sanctions imposed by the United State government of President Donald Trump against Venezuela.
USA refiner Phillips 66, which in July did not receive supplies of Venezuelan oil, in August imported 121,000 bpd of Merey heavy crude, according to the data.
Reuters reports that Venezuela suspended the sale of US currency through its Dicom auction system that President Nicolas Maduro said the government will use to switch from dollars to a basket of other currencies.
The country’s petroleum ministry listed the week’s closing price per barrel at 306.26 yuan on its website, equivalent to $46.7, up from 300.91 yuan the week before.
“This format is the result of the announcement made on Sept 7 by the president. that Venezuela will implement new strategies to free the country from the tyranny of the dollar”, the ministry wrote in a statement released after the bulletin.
“Nobody is changing contracts for now”, said one oil trader consulted about the issue who asked not to be identified. PDVSA, according to the plan, will do half its oil and fuel trades in currencies other than the greenback.
State-run oil company PDVSA has sought to increase exports of diluted crude oil (DCO), a blend of imported naphtha and extra heavy oil from the Orinoco Belt, Venezuela’s largest producing region.
Venezuela’s Dicom currency system on Wednesday temporarily suspended the sale of U.S. dollar in order to incorporate other currencies.
But Venezuela remains dependent on the greenback given that it conducts ample commercial trade with the United States both through exports of oil and imports of USA food and consumer products.
President Donald Trump’s administration in August imposed sanctions meant to disrupt PDVSA and the Venezuelan government’s ability to raise new debt, and banned Citgo from transferring dividends or other profits to its parent company.