“Venezuela has not been a good ally, while the Chinese have been. Venezuela has not been paying China the enormous debt they have with them, nor have they even tried to get to some point where they can begin to service the debt,” said Russ Dallen, president of the investment firm Caracas Capital.
At the moment Venezuela is trying to ship as much crude oil as possible before the June 12 date, fearing the worst, added Dallen, whose firm monitors the regime’s oil operations. “They know that with a tax of between $30 and $40 a barrel, private Chinese refineries are not going to buy Venezuelan crude because it doesn’t make economic sense,” he said.
Dallen said that with the recent spike in crude prices, Venezuela may still be able to find buyers if it offers even greater discounts, but the proposal is always accompanied by the possibility that the U.S. Treasury Department may end up punishing the buyer for violating the sanctions.