Reviving Trade: Venezuelan Oil Exports Gain Momentum Under U.S. Deal

Trading firms Trafigura and Vitol are exporting Venezuelan oil under a U.S.-backed $2 billion supply deal. Initial sales reached $500 million, lifting sanctions-era discounts. Venezuelan oil now reaches the U.S., Europe, and India, offering Venezuela higher revenues and possibly reversing output cuts.

In a significant move for the Venezuelan oil industry, trading houses Trafigura and Vitol have commenced exports under a $2 billion U.S.-backed supply deal. This development marks a shift as Venezuelan crude, previously restricted by stringent U.S. sanctions, finds its way to global refiners.

According to sources, Trafigura recently sold a cargo of Venezuelan oil to Spanish refiner Repsol, while Vitol is preparing shipments to various refiners, including those in the U.S. Market dynamics are shifting with the 50-million-barrel supply deal, suggesting intensified trade flows.

Venezuela is now reaping higher prices for oil exports due to reduced discounts necessitated by sanctions. With oil trading at $63 a barrel, Venezuela's revenue prospects are brightening, potentially enabling the reversal of recent production cuts, industry insiders suggest.