• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 1 hour One Last Warning For The U.S. Shale Patch
  • 8 hours Russian Effect: U.S. May Soon Pause Preparations For Delivering F-35s To Turkey
  • 5 hours Chile Tests Floating Solar Farm
  • 3 mins China's Expansion: Italy Leads Europe Into China’s Embrace
  • 15 hours Poll: Will Renewables Save the World?
  • 15 hours New Rebate For EVs in Canada
  • 7 hours Trump Tariffs On China Working
  • 9 hours Trump sells out his base to please Wallstreet and Oil industry
  • 6 hours Biomass, Ethanol No Longer Green
  • 24 hours Boeing Faces Safety Questions After Second 737 Crash In Five Months
  • 1 day Oil-sands recovery by solvents has started on a trial basis; first loads now shipped.
  • 9 hours Read: OPEC THREATENED TO KILL US SHALE
  • 13 hours 3 Pipes: EPIC 900K, CACTUS II 670K, GREY OAKS 800K
  • 18 hours The Political Debacle: Brexit delayed
Oil Is Set To Rise, But The Rally May Not Last

Oil Is Set To Rise, But The Rally May Not Last

The comparative crude oil inventories…

Reliance Industries Stops Diluent Deliveries To PDVSA

Shipping

India’s Reliance Industries has suspended shipments of much-needed diluents to Venezuela’s PDVSA and will not resume them until U.S. sanctions against the South American country are not lifted.

Reuters quoted a statement by the company as saying Reliance has also not raised the amount of oil it buys from PDVSA under a 2012 contract that stipulated it would buy between 300,000 and 400,000 bpd of Venezuelan crude for a period of 15 years. However, Reuters calculations suggest that Reliance has been importing less than 300,000 bpd from Venezuela since 2018.

Reliance was supplying diluents necessary to make the extra heavy Venezuelan crude fluid enough to be loaded on tankers from its U.S. subsidiary. Before the January sanctions, the country imported an average 100,000 bpd of naphtha to use as diluent at a naphtha/crude rate of 1:4. Most of these imports came from the United States.

Now Washington is tightening the noose, and companies that do business both in the United States and in Venezuela are heeding its instruction to stop the latter.

Reliance is India’s largest refiner and operator of the biggest refining complex in the country. It is also part of a sprawling global conglomerate that has close ties to the U.S. financial system hence its precarious position with regard to the Venezuelan sanctions.

“Since the U.S. government imposed sanctions on the government of Venezuela in late January 2019, Reliance Industries Ltd has been in close contact with representatives from the U.S. State Department to ensure full compliance,” the company told Reuters.

Meanwhile, PDVSA’s U.S. business, Citgo, has got a new board of directors appointed by the self-declared interim president of Venezuela, opposition leader Juan Guaido with the assistance of the United States, which is seeking to replace Nicolas Maduro with Guaido before new elections are held in the embattled country.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Sheik Jerboutti on March 14 2019 said:
    In every article about Venezuela, Irina always claims that Juan Guaidó is "self-appointed" or "self-declared" president of Venezuela. Just so you will know, he is elected by the Ansemblea Nacional under Venezuela's pre-existing constitution and his presidency is internationally recognized. The Ansemblea Nacional is the only legitimate political body in Venezuela.

    Irina, just keep mouthing your masters' talking points.

Leave a comment

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