Global commodities traders Vitol and Trafigura have opened negotiations with refiners in India and China to place Venezuelan crude oil cargoes, with deliveries expected as early as March, according to industry sources.
The talks follow confirmation that both firms secured agreements with the United States government to market Venezuelan oil previously stranded by sanctions. The move comes days after Venezuela’s interim authorities approved the export of up to 50 million barrels of crude to the U.S., a decision expected to restart flows from the OPEC producer after months of disruption.
Sources told Reuters that the traders are now racing to place the barrels and secure vessels for shipment. Trafigura said it will load its first Venezuelan crude cargo for the U.S. this week, marking the start of the renewed export programme.
India, China in Focus
In India, Vitol has approached state-owned refiners with offers priced at discounts of $8 to $8.50 per barrel against ICE Brent on a delivered basis. Refiners such as Indian Oil Corporation and Hindustan Petroleum Corporation are among those reviewing potential purchases, according to people familiar with the talks.
Reliance Industries also stated that it could resume purchasing Venezuelan crude if U.S. regulations permit sales to non-U.S. buyers.
In China, Vitol and Trafigura have contacted PetroChina to gauge demand. Before U.S. sanctions took effect, PetroChina ranked among the largest buyers of Venezuela’s heavy sour Merey crude and fuel oil.
Trafigura stated that it is providing logistical and marketing support for the transactions, but declined to comment on the commercial terms. Another source said both traders are offering cargoes for delivery in the second half of March.
Logistics and Market Impact
Shipping data firm Kpler reported that Vitol on Sunday loaded its first naphtha cargo from the United States to Venezuela aboard the Panamax-sized vessel Hellespont Protector. The vessel is scheduled to arrive at the Port of Jose on January 28. Naphtha serves as a diluent that thins Venezuela’s heavy crude, easing transportation and refining.
The planned resumption of Venezuelan exports has eased concerns over potential supply disruptions from Iran and helped cap recent oil price gains. As of Monday evening, Brent crude traded at $63.42 per barrel.
With marketing channels reopening and buyers emerging in Asia, traders expect Venezuelan crude flows to accelerate under the U.S.-backed framework in the coming weeks.