The PDVSA state oil corporation of Venezuela cancelled multiple export loading permissions granted to Chevron as a U.S. oil producer in April based on sources who possess knowledge of the situation. The decisions to suspend authorizations came shortly after President Donald Trump implemented his tariffs on Venezuelan oil buying countries.

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Washington made this decision following its recent action where it canceled crucial PDVSA licenses granted to various partners involving Chevron among them. Through prior licenses these companies maintained the ability to operate Venezuelan oil exports under specific exemptions within the American sanctions on South American oil. The U.S. Treasury Department requires all companies to terminate operations by May 27 while concluding their current purchase transactions before the deadline. Chevron exercised its license which enabled 250,000 daily barrels of Venezuelan crude to move from its operations through the United States.

In April the United States enforced a 25% petroleum tax on Venezuelan crude oil purchases which experts predicted would mostly harm Chinese crude oil and gas importers who received the most Venezuelan petroleum sales.

Also Read | What are secondary tariffs, and will India be affected by Venezuela's oil sanctions by Trump?

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Information reveals that two canceled cargo authorizations covered vessels that were already completed with petroleum on board which would force the oil to return to Venezuelan shipping terminals. The unloading of the third transportation container did not occur yet. The companies PDVSA and Chevron have not yet reacted to the requests for their comments about these recent developments. The planned timeline of the involved shipments remains unknown.

The political administration under Venezuelan President Nicolas Maduro defends its opposition to U.S. economic measures which they view as an "economic war." Some cargo loadings at Venezuelan ports experienced delays this month because of the imposed taxes on Venezuelan oil exports primarily targeting Chinese receiving ports. The shipment resumptions for these loadings started during this week. Until this recent development, Chevron's Venezuelan crude exports had remained unaffected by the tariffs due to its specific license.