Venezuelan Crude Finds Path to Spain Amid U.S. Sanctions

Venezuelan heavy crude is being transported to Spanish refineries owned by Repsol after negotiations with Trafigura. U.S. licenses granted to Trafigura and Vitol have permitted the export of Venezuelan oil, stored in Caribbean terminals, to refiners in the U.S. and Europe. Repsol and Trafigura declined to comment.

Venezuelan heavy crude is making its way to Spain, specifically targeting refineries owned by Repsol, according to shipping schedules reviewed by Reuters. This move follows negotiated purchases with trading company Trafigura.

Recently, Trafigura along with Vitol, secured U.S. licenses permitting them to export significant volumes of Venezuelan oil not only to the U.S. but other international destinations. These companies are utilizing Caribbean terminals for storage, while simultaneously marketing these large shipments to refiners across the U.S. and Europe. While Repsol chose not to comment, Trafigura also refrained from issuing any statement regarding their Venezuela-related operations.

For the first time since last year's first quarter, Spain is resuming imports of Venezuelan crude. This follows the earlier actions by former U.S. President Donald Trump, who revoked authorizations that allowed foreign companies to handle oil from the U.S.-sanctioned nation. Reports indicate one of the two Merey heavy crude cargoes, transported on Suezmax tankers, departed from the Jose port operated by state company PDVSA in early February, while the second shipment nears completion.

(With inputs from agencies.)