Vitol Prepares to Export Venezuelan Fuel Oil After Landmark U.S. Deal

Vitol is gearing up to export Venezuelan fuel oil as part of a significant U.S.-backed deal, enabled by recent licenses to load and export. The strategy aims to re-open Venezuelan oil markets previously curtailed by U.S. sanctions, tapping into stored reserves ready for international distribution.

Vitol, a leading trading house, is set to export fuel oil from Venezuela in a notable expansion of shipments following a strategic U.S.-endorsed deal. This step comes after the capture of Venezuelan President Nicolas Maduro and serves to facilitate increased oil distribution globally.

Vitol and Trafigura, having secured U.S. licenses, are preparing to reintroduce Venezuelan oil into markets long blocked by sanctions, storing it in Caribbean terminals and targeting refiners across the U.S., Europe, and India. This aligns with a major 50-million-barrel agreement between Caracas and Washington that aims at revitalizing Venezuelan oil's presence globally.

Efforts are underway to assess PDVSA's terminals for loading efficiency, as the country holds significant reserves in response to a U.S. oil blockade initiated in December. Venezuela's high-sulphur fuel oil, previously marketed to Asia, is now poised for broader reach.