Oil Traders Secure Venezuelan Crude Amid U.S. Strategy Shift

Oil trading firms like Vitol and Trafigura have capitalized on early deals for Venezuelan crude, outpacing U.S. energy giants wary of credit and legal risks. The traders are better poised to rejuvenate Venezuela's oil sector post-U.S. intervention, ensuring revenue flows under interim leadership while shielding proceeds from creditors.

Oil trading powerhouses Vitol and Trafigura have emerged victorious in the scramble to seize control of Venezuelan crude oil flows. Leveraging their agility and risk appetite, these firms have outpaced U.S. energy giants, wary of credit and legal complications, to secure potentially lucrative deals in a nation possessing the largest crude reserves globally.

With U.S. president Donald Trump's administration spearheading a campaign to reboot Venezuela's struggling oil sector, these trading firms secured swift agreements to get Venezuelan oil exports back on track. This effort seeks to generate revenue under U.S. supervision to support interim President Delcy Rodriguez's government in Caracas.

While the U.S. taps merchant houses for immediate oil flow restoration, Washington and Caracas are negotiating a $2 billion crude sale deal, a crucial element in restructuring Venezuela's oil industry and facilitating ongoing exports. However, U.S. majors remain cautious, influenced by previous asset seizures and a complex geopolitical landscape.

(With inputs from agencies.)