• 30 mins Retail On Pace For Most Bankruptcies And Store Closures Ever In One Year: BDO
  • 10 minutes America Could Go Fully Electric Right Now
  • 22 hours Majors Oil COs diversify into Renewables ? What synergies forget have with Solar Panels and Wind Tirbines ? None !
  • 10 hours OP article : "Trump blasts Biden Fracking Plan . . . "
  • 5 mins Clean Energy Is Canceling Gas Plants
  • 7 hours Biden has Obama do a Philadelphia Rally for him. Less than 100 supporters turned out. Really.
  • 21 hours Vote Biden for Higher Oil Prices
  • 1 day America's Frontline Doctors - Safely Start Living Again!
  • 2 days France Sees 10.6% EV Market Share In September — 4× Growth Year On Year
  • 39 mins Biden denies fracking ban
  • 4 hours "COVID Kills Another Oil Rally" by Tom Kool 10/16/2020
  • 1 hour Conoco Pledges ‘Net-Zero’ Emissions in Break With U.S. Rivals
  • 2 days Tesla Model 3 Is September's Top Selling Car of All Vehicles in Switzerland
  • 2 days TX NATGAS flaring
  • 12 hours A sneak peak into the US election
  • 2 days GPOR - Gulfport Oil - Why?
  • 2 days covid. stop the carriers and thus stop the virus.
Alberta Unimpressed By Canadian Plastics Ban

Alberta Unimpressed By Canadian Plastics Ban

Canada’s federal government has confirmed…

This Deal Could Create The Next Big Shale Giant

This Deal Could Create The Next Big Shale Giant

Just a day after ConocoPhilips…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Sanctions Cut Off Venezuelan Crude Supply To U.S. Refiners

U.S. refiners will not be able to complete transactions for shipments of crude from Venezuela’s PDVSA for cargoes they had contracted before the U.S. Treasury slapped sweeping sanctions on the Venezuelan state oil firm, Bloomberg reports, quoting people familiar with the matter.

Last Monday, the U.S. imposed sanctions on PDVSA to “help prevent further diverting of Venezuela’s assets by Maduro and preserve these assets for the people of Venezuela. The path to sanctions relief for PdVSA is through the expeditious transfer of control to the Interim President or a subsequent, democratically elected government,” Secretary of the Treasury Steven T. Mnuchin said.

The sanctions block all payments to PDVSA accounts, and buyers of Venezuelan crude are directed to deposit payments in a separate account, to which PDVSA doesn’t have access.

U.S. refiners have asked the Treasury for clarification regarding payments for already contracted shipments, and officials have told some companies that they are not exempt from the ‘separate account rule’ despite the fact that they have already contracted cargoes, two people familiar with the matter told Bloomberg.

This is an issue for U.S. refiners, because PDVSA now wants pre-payment for any cargo it will be sending to the U.S. However, U.S. persons are banned from dealing with PDVSA.

“As a result of today’s action, all property and interests in property of PdVSA subject to U.S. jurisdiction are blocked, and U.S. persons are generally prohibited from engaging in transactions with them,” the Treasury said last Monday.

According to ship tracking data compiled by Bloomberg, two tankers contracted for Valero Energy and one Chevron tanker are sitting off Venezuela’s coast awaiting payment.

Analysts tell Bloomberg that refiners don’t have a clear idea of how they are going to proceed, while market sources tell Reuters that some U.S. Gulf Coast refiners have started to cut refining rates amid rising costs for crude with the Venezuelan sanctions and amid gasoline refining margins plunging to the lowest in almost a decade.

By Tsvetana Paraskova for Oilprice.com

More Top Reads from Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Lee James on February 04 2019 said:
    The U.S. sounds humanitarian with this statement: “help prevent further diverting of Venezuela’s assets by Maduro and preserve these assets for the people of Venezuela. . . ." A deposit account inaccessible by the Maduro government has been set up.

    I believe the Maduro government will fall on its own without the help of the U.S.. Meanwhile, neighboring countries are today absorbing the fallout of what is happening in Venezuela. Maybe proceeds from Venezuelan oil sales could go to aid those countries?
  • Kevin Christensen on February 05 2019 said:
    Everybody on the planet knew at some point sanctions were coming, or oil production would continue to go down. Shame on them for not planning ahead of time...

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News