Dragon fumes at US' oily business in Caracas; Tehran may benefit

Houston/Beijing: Global oil prices fell on Wednesday and China denounced the US as a bully after President Donald Trump's administration said it had persuaded Venezuela to divert supplies from Beijing and import up to $2 billion worth of sanctioned crude.

The deal was in line with Trump's stated aim of controlling the South American OPEC member's vast oil reserves after deposing its leader Nicolas Maduro whom it had long cast as a drug-trafficking dictator in league with Washington's foes.

Maduro's Socialist Party allies remain in power in Venezuela, where interim President Delcy Rodriguez is treading a fine line between denouncing his "kidnapping" and kick-starting cooperation with the US under threats from Trump.


The deal could initially require cargoes bound for Venezuela's top buyer China to be rerouted as Caracas seeks to unload millions of stranded barrels,

"The US'brazen use of force against Venezuela and its demand for 'America First' when Venezuela disposes of its own oil resources are typical acts of bullying," Chinese foreign ministry spokesperson Mao Ning told a press conference."These actions seriously violate international law, gravely infringe upon Venezuela's sovereignty, and damage the rights of the Venezuelan people."

China may buy more Iranian Oil

Chinese independent refiners are expected to switch to heavy crude from sources including Iran in coming months to replace Venezuelan shipments, traders and analysts said. The $2 billion oil arrangement is likely to curtail Venezuelan supply to China, analysts say, reducing a source of cheap oil for independent refiners. Reuters