• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 12 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 days Does Toyota Know Something That We Don’t?
  • 7 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 4 days World could get rid of Putin and Russia but nobody is bold enough
  • 2 hours America should go after China but it should be done in a wise way.
  • 6 days China is using Chinese Names of Cities on their Border with Russia.
  • 7 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 7 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 6 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 7 days Putin and Xi Bet on the Global South
  • 7 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 8 days United States LNG Exports Reach Third Place
  • 8 days Biden's $2 trillion Plan for Insfrastructure and Jobs
Hydrogen Mining: The New Energy Transition Challenge

Hydrogen Mining: The New Energy Transition Challenge

French researchers have discovered a…

Iraq Moves to Take Control of Kurdistan's Finances

Iraq Moves to Take Control of Kurdistan's Finances

The Iraqi federal government is…

More Traders And Shippers Turn Their Backs On Venezuelan Oil

Trafigura, Equinor, Exxon, and Unipec are among the companies that are increasingly turning their backs on Venezuelan oil contracts, along with vessel operators, all too aware of the consequences of violating U.S. sanctions against Venezuela.

Reuters reports, citing sources familiar with the situation, that Trafigura, for one, had told its traders to avoid any dealings with Venezuela, both directly and indirectly. At the same time, Unipec—the trading arm of Chinese Sinopec—had revised its oil tanker contracts to state that the vessels it uses have not called at a Venezuelan port in the past 12 months, according to a document seen by Reuters.

Exxon had revised its charter contract to avoid tankers that had called at Venezuelan ports in recent months. Taken together with Unipec’s contract revision, the change affects some 250 tankers.

The Reuters reports follows one by Bloomberg from last month, which said shipping companies were increasingly reluctant to deliver vessels to Venezuela afraid this may lead to them losing the insurance of the vessels.

The Trump administration has been tightening the noose around Venezuela. The latest round of sanctions was signed in August and they spread to anyone doing business with the Maduro government, both U.S. and non-U.S. Following the signing of the order for the sanctions, the Shipowners’ Club told its members to “exercise caution” in their dealings with Venezuela.

Now, with 250 tankers effectively blacklisted, freight rates for oil vessels heading to Asia are rising, with VLCC rates hitting a record $14 million in just a few weeks.

For Venezuela, there is another problem on the horizon. Later this month, waivers will expire for the handful of U.S. companies still operating in the country. There has been no indication that Washington is willing to extend these, which means Venezuela’s oil production could drop by as much as half.

By Irina Slav for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News