Vitol and Trafigura Reignite Venezuelan Crude Trade Amid Global Market Shifts

Vitol and Trafigura have begun discussions about selling Venezuelan crude oil to Indian and Chinese refiners for delivery in March. This follows agreements with the U.S. to market stranded Venezuelan oil. The traders aim to accelerate sales and resume exports after Venezuelan oil was halted due to political shifts.

Vitol and Trafigura have initiated talks with refiners in India and China on Venezuelan crude oil sales, aiming for March deliveries. Several trade sources confirmed these discussions on Monday.

The global commodities traders announced agreements with the U.S. government last Friday to facilitate the sale of stranded Venezuelan oil. This comes after the interim government in Caracas consented to export up to 50 million barrels of crude oil to the U.S., resuming exports that were suspended following President Nicolas Maduro's fall from power.

The trading firms are moving swiftly to secure shipping arrangements, with Trafigura's CEO confirming that the company's first U.S.-bound cargo is scheduled for loading this week. Approaches have been made to Indian state refiners and PetroChina, as both companies evaluate potential purchases. Despite not commenting on specific discussions, Vitol and Trafigura are providing logistical and marketing services to promote these sales.

(With inputs from agencies.)