Saudi Aramco Purchases First Venezuelan Crude: A Strategic Move

Saudi Aramco's U.S. trading arm has acquired a cargo of Venezuelan Boscan crude, marking its first purchase of this heavy oil suitable for asphalt. The purchase, made from Chevron, highlights increased Venezuelan oil exports under recent U.S. licenses, amid growing industry interest in Venezuelan crude.

Saudi Aramco's U.S. trading division has ventured into new territory by purchasing a cargo of Venezuelan Boscan crude oil, a first for the company. This heavy crude, ideal for asphalt production, was acquired from the U.S. energy major Chevron, sources familiar with the transaction confirmed on Thursday.

Motiva Trading, now fully owned by Aramco after its acquisition in 2023, operates the largest refinery in the United States located in Port Arthur, Texas. This recent deal represents Aramco Trading America's initial foray into Venezuelan crude, previously untouched due to U.S. sanctions that affected Venezuela's entire energy sector.

Industry data reveals an upsurge in Venezuelan crude exports thanks to special licenses granted by the U.S. Treasury Department, allowing key players such as Chevron, Trafigura, and Vitol to increase their imports. The January increase in Venezuelan oil exports to the U.S. reached 284,000 barrels per day, signaling a significant boost from the previous month's figures.