Venezuela-U.S. Talks: A New Direction in Crude Oil Trade

Officials from Venezuela and the U.S. are in discussions over exporting Venezuelan crude to American refiners. This potential deal, reported by multiple sources, could shift supplies from China and prevent further production cuts by PDVSA, while Chevron continues to transport Venezuelan oil under U.S. authorization.

Caracas and Washington are reportedly negotiating the export of Venezuelan crude oil to refineries in the United States, according to five government, industry, and shipping sources. This move could redirect supply away from China and help PDVSA escape severe production cutbacks.

Previously, U.S. President Donald Trump's administration had blocked Venezuelan oil exports, intensifying pressure on Venezuelan President Nicolas Maduro, who was captured by U.S. forces over the weekend. Discussions may lead to reallocating deliveries initially destined for China, sources said. Currently, Chevron is the principal operator transporting Venezuelan oil to the U.S. under existing authorization.

The embargo has forced PDVSA to reduce output as storage filled up, prompting urgency to finalize export agreements. Talks are ongoing about sales channels, potentially involving auctions for U.S. buyers and licenses for PDVSA's partners. The implications of these negotiations may extend to restocking the U.S. Strategic Petroleum Reserve in future agreements.

(With inputs from agencies.)