Vitol & Trafigura offer Venezuelan oil to India, China for March: Sources

New Delhi: Global commodities traders Vitol and Trafigura have begun talks with refiners in India and China to sell Venezuelan crude oil for delivery in March, according to trade sources. The discussions follow confirmation by the traders last week that they had reached agreements with the US government to help market stranded Venezuelan oil.

This came days after Venezuela’s interim government agreed to export up to 50 million barrels of crude to the US.

The move is expected to accelerate the resumption of Venezuelan oil exports, which had been curtailed following the removal of President Nicolas Maduro.

Vitol and Trafigura are moving quickly to secure vessels and place cargoes. Trafigura’s chief executive said the company will load its first cargo bound for the US this week. In India, Vitol has approached state-run refiners, sources said. One cargo was offered at a discount of $8–$8.50 a barrel to ICE Brent on a delivered basis. Indian Oil Corp and Hindustan Petroleum Corp are said to be open to considering Venezuelan crude, while Reliance Industries has indicated it may resume purchases if US rules allow sales to non-US buyers.

The traders have also sounded out PetroChina, a major buyer of Venezuelan crude before US sanctions. Sources said initial interest is likely to come from large state-owned refiners rather than smaller independent players.

Cargoes are being offered for delivery in the second half of March. The expected return of Venezuelan supply has eased concerns over potential disruptions elsewhere, helping cap gains in global oil prices.