Venezuela doubled its crude oil exports in February, shipping 788,000 barrels daily as US oversight of the country's oil sales took effect. This marks a five-month high and compares to just 383,000 barrels in January, according to shipping data from Kpler Ltd. The surge comes as Chevron Corp. and commodity traders Trafigura Group and Vitol Group have been authorized to sell Venezuelan oil.

Crude production is rebounding after hitting a two-year low in January when political uncertainty gripped the nation. Venezuela has regained access to heavy naphtha, essential for reducing oil viscosity and enabling pipeline transport. The country received five diluent cargoes last month compared to two in January. These exports are being closely watched against the backdrop of US-Iran tensions that have roiled global energy markets.

US refiners are taking the largest Venezuelan oil volumes in over seven years through the authorized trading channels. Trafigura and Vitol have shipped at least 35 million barrels since early January, representing about 70% of oil relinquished by Venezuela. Approximately half of this oil sits in storage across the Caribbean, US, and on vessels, as China has purchased none since political changes. The heavy crude, while not a direct substitute for Middle Eastern oil, can be blended with lighter grades to create similar products.