Vitol, Trafigura Offer Venezuelan Crude Oil to Indian and Chinese Refiners for March Delivery
New Delhi/Singapore, Jan 12:
Global commodities trading giants Vitol and Trafigura have initiated talks with refiners in India and China to supply Venezuelan crude oil for delivery in March, according to multiple trade sources.
The move follows recent agreements between the trading firms and the U.S. government to help market Venezuelan oil that had been stranded due to sanctions. These agreements came shortly after Venezuela’s interim authorities approved the export of up to 50 million barrels of crude oil to the United States, easing restrictions on the OPEC producer’s oil trade.
Venezuelan Oil Exports Set to Resume
The renewed marketing push is expected to accelerate Venezuela’s return to global oil markets after exports were largely halted following the removal of President Nicolas Maduro. Both Vitol and Trafigura are moving quickly to secure shipping capacity and place cargoes with international buyers.
Trafigura’s chief executive recently said the company is set to load its first Venezuelan crude cargo for the U.S. this week, highlighting the urgency to restart exports.
Indian Refiners Show Interest
Sources said Vitol has approached Indian state-owned refiners with offers of Venezuelan crude. One source noted that a cargo was offered at a discount of $8 to $8.50 per barrel to ICE Brent, delivered to India.
State refiners Indian Oil Corporation and Hindustan Petroleum Corporation have indicated they would consider buying Venezuelan oil, though neither company has officially commented.
Meanwhile, Reliance Industries said it would review Venezuelan crude purchases if U.S. regulations allow sales to non-U.S. buyers.
Talks with PetroChina in Focus
Vitol and Trafigura have also reached out to PetroChina, China’s state-owned refiner, to assess demand. PetroChina was previously a major buyer of Venezuela’s heavy sour Merey crude and fuel oil before U.S. sanctions disrupted trade.
“The traders are likely to target large state refiners first rather than independent ‘teapot’ refiners,” one source said, referring to smaller Chinese refiners that typically purchase discounted sanctioned oil.
PetroChina has not yet responded to requests for comment.
March Cargoes and Naphtha Supply
Trade sources said the cargoes being offered are scheduled for delivery in the second half of March.
Separately, shipping data showed that Vitol loaded a naphtha cargo from the U.S. to Venezuela on Sunday. The vessel is expected to arrive at Port of Jose later this month. Naphtha is crucial for diluting Venezuela’s heavy crude, making it easier to transport and refine.
Impact on Global Oil Markets
The anticipated resumption of Venezuelan oil exports has helped offset concerns over potential supply disruptions from Iran, contributing to capped gains in global oil prices.
Vitol declined to comment on the talks. Trafigura confirmed it is providing logistical and marketing support for Venezuelan oil sales but did not disclose details of ongoing discussions.
0 Comments