Global commodities giants Vitol and Trafigura have begun discussions with refiners in India and China to sell Venezuelan crude oil, as exports from the OPEC producer edge closer to a full restart. Trade sources say deliveries are expected as early as March, marking a significant shift after months of sanctions-related disruptions.
According to a Reuters report, the traders confirmed they had reached agreements with the United States government to help market Venezuelan oil that had been stranded by sanctions. This follows approval by Venezuela’s interim authorities to export up to 50 million barrels of crude to the US, a move designed to revive output and stabilize revenue flows.
The renewed push is expected to accelerate Venezuelan crude sales under a US-backed programme, effectively reopening international markets for the country’s oil. Vitol and Trafigura are reportedly racing to secure vessels, with Trafigura already set to load its first Venezuelan cargo for the US this week.
In India, Vitol is said to be offering cargoes to state-owned refiners at discounts of $8 to $8.50 per barrel against ICE Brent on a delivered basis. Indian Oil Corporation and Hindustan Petroleum Corporation are among those considering purchases, while Reliance Industries has indicated it may resume buying if sales to non-US buyers comply with US regulations. In China, both traders have reportedly sounded out PetroChina, once a major buyer of Venezuela’s heavy Merey crude before sanctions took effect.
Meanwhile, logistics are moving quickly on the ground. Shipping data firm Kpler reported that Vitol has already loaded a naphtha cargo from the US to Venezuela to help dilute its heavy crude for transport and processing. The prospect of Venezuelan oil returning to global markets has eased fears of supply disruptions from Iran, helping to cap oil price gains, with Brent crude trading around $63.42 per barrel as of Monday evening.
source: punch