• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 7 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 11 minutes Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 14 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 7 mins Trump needs to educate US companies and citizens on Chinese Communist Party and People's Liberation Army. This is real ECONOMIC WARFARE. To understand Chinese warfare read General Sun Tzu's "Art of War" . . . written 500 B.C.
  • 17 mins Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 3 hours Is $60/Bbl WTI still considered a break even for Shale Oil
  • 1 hour Level-Headed Analysis of the Future of U.S. Shale Oil Industry
  • 5 hours Asia Oil Refiners Mull Run Cuts With Margins At 16 yrs. Low For Season
  • 3 hours Trump bogged down in Mideast quagmire. US spent $Trillions, lost Thousands of lives, and lost goodwill. FOR WHAT? US interests ? WHAT INTEREST ? . . . . China greatest threat next 50 years.
  • 9 hours Devastating Sanctions: Iran and Venezuela hurting
  • 3 hours Why is Strait of Hormuz the World's Most Important Oil Artery
  • 28 mins Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 3 hours Misunderstanding between USA and Iran the cause of current stand off, I call BS
  • 3 hours ARAMCO BOARD: Former Dow Chemical CEO Andrew Liveris: I want to help Saudi Arabia become a 21st century economy
  • 5 hours IMO 2020 could create fierce competition for scarce water resources
  • 5 hours IMO2020 To scrub or not to scrub
What The Market Is Overlooking In The Occidental Deal

What The Market Is Overlooking In The Occidental Deal

Occidental Petroleum has caught a…

Trader Trafigura To Stop Oil Business With Venezuela

Tanker storm

Due to the U.S. sanctions on Venezuela’s oil industry and state firm PDVSA, one of the world’s largest commodity traders, Trafigura, has decided to halt its oil trade with Venezuela, Reuters reported on Friday, quoting a source with direct knowledge of the plans.

Trafigura walking out of oil trading with Venezuela would be a harsh blow to PDVSA, which has been working with Trafigura and other trading houses to sell crude oil and to import refined oil products.

In 2018, Trafigura directly lifted 34,000 bpd of crude oil and products from Venezuela, most of which it resold to refineries in the U.S. and China, according to internal documents of PDVSA which Reuters has seen.

The U.S. sanctions now block all payments to PDVSA accounts, and buyers of Venezuelan crude are directed to deposit payments in a separate escrow account, to which PDVSA and the regime of Nicolas Maduro doesn’t have access.

Trafigura will stop trading with PDVSA after it completes a small number of trades that have already been concluded, according to Reuters’ source.

Some ten days after the U.S. sanctions on Venezuela were imposed, trading houses were still unable to resell Venezuelan crude oil, Reuters reported last week, citing sources and shipping data.

Due to the harsh sanctions, end-users are reluctant to buy Venezuelan crude, and cargoes are being left stranded in the Atlantic basin, according to Refinitiv Eikon data. Trading houses in Europe, including Trafigura and Vitol, regularly offer Venezuelan crude to refiners, but now the commodity traders are finding it hard to find an end user willing to buy.

“No one who typically takes Venezuelan crude from us is lifting a single barrel,” a Trafigura trader told Reuters, commenting on the spot market of Venezuelan oil. “Buyers are not sure of the risks and how to ensure any payments are not remitted to PDVSA,” according to the trader.

Last week, Trafigura told Reuters that it was following “all applicable sanctions.”

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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