🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

Trading houses help Venezuela replenish fuel stocks under US license

Published 12/12/2023, 11:55 AM
Updated 12/12/2023, 12:00 PM
© Reuters. FILE PHOTO: Motorists line up for fuel at a gas station of the Venezuelan state-owned oil company PDVSA in Caracas, Venezuela November 2, 2018. REUTERS/Marco Bello/File Photo
CVX
-
REPYY
-

By Marianna Parraga

HOUSTON (Reuters) - Trading houses that emerged as early buyers of Venezuelan crude following an U.S. easing of oil sanctions in October are now supplying state company PDVSA with motor fuels and diluents for its heavy oil production, according to documents and data.

Ahead of a presidential election scheduled for late 2024, Venezuela has begun prioritizing fuel imports to avoid a new wave of the gasoline and diesel shortages that spurred protests in recent years, according to the documents and sources.

Washington two months ago issued a six-month license that lifted most sanctions on the South American country's oil industry, allowing exports of crude and gas to its chosen markets, and imports of fuel from almost any source. The authorization is contingent to the fulfillment of a pact to carry on a free presidential election.

PDVSA aims to replenish low inventories that had created a need for routine imports and had left the country's stocks vulnerable to demand increases, the sources said.

The new supplies complement oil swaps previously negotiated by PDVSA with some joint ventures partners, including oil majors' Chevron (NYSE:CVX), Eni and Repsol (OTC:REPYY), and deals arranged in recent years with partners including Iran.

PDVSA and Venezuela's oil ministry did not immediately reply to a request for comment.

Motorists have intermittently faced scarcity of gasoline and diesel in Venezuela in recent years even as subsidized prices have increased. Households also resorted to alternative sources of energy amid a lack of liquefied petroleum gas for cooking.

PDVSA imported an average 54,000 barrels per day of heavy naphtha and gasoline blend stock in November supplied by Chevron and Repsol, the highest monthly figure since January.

That volume excludes imports of light oil and condensate from Iran, which have decreased in the second half of the year, according to company documents and tanker tracking data from LSEG.

This month, a similar volume of heavy naphtha has been scheduled to be received from Swiss-based trader Vitol, according to the documents, which showed that some negotiations involve cargo swaps.

© Reuters. FILE PHOTO: Motorists line up for fuel at a gas station of the Venezuelan state-owned oil company PDVSA in Caracas, Venezuela November 2, 2018. REUTERS/Marco Bello/File Photo

Vitol also chartered a tanker to pick up a 1 million-barrel cargo of Venezuelan heavy crude in the second half of December, the LSEG data showed.

Vitol and rival Trafigura since October have bought Venezuelan crude and fuel oil from middlemen firms. Most cargoes have been shipped to China, while Eni and Chevron were recently authorized to deliver to Indian refiners, the documents and data showed.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.