Europeans Halt Venezuelan Crude Purchases
European buyers of the heavy crude produced by Venezuela’s PDVSA have put their purchases on hold in anticipation of sanctions against the government in Caracas to be announced by the European Union.
The European Parliament followed Washington’s example in recognizing national Assembly President Juan Guaido as interim president earlier this week, although the agreement to do so was not unanimous, Oil Price reported.
Meanwhile, UK’s Foreign Secretary Jeremy Hunt has urged his European Union colleagues to introduce more sanctions against Venezuela in a bid to increase the pressure on President Maduro and force him out, like Washington hopes with the latest round of sanctions that specifically targeted PDVSA.
In Europe, PDVSA trades with Spain’s energy major Repsol, commodity traders Trafigura and Vitol, among others, and Swedish Nynas. Earlier this week, Reuters reported that PDVSA was seeking to renegotiate contracts with oil buyers in a bid to circumvent the new US sanctions.
“We are trying to redo the contracts. It is not yet entirely clear how because customers are being individually called, but we are studying alternatives,” a source from the Venezuelan state company said.
Another tactic PDVSA is using, according to the sources, is asking commodity trading houses to act as intermediaries for its sales of crude to clients abroad, including US refiners.
Despite falling production and exports, Venezuela is still exporting some 1.25 million barrel per day of crude, of which half a million barrels daily go to US refiners.
At the same time, the country imports some 200,000 bpd of refined products. These imports are essential for the functioning of Venezuela’s oil industry as a substantial portion of them are diluents needed to be added to Venezuela’s extra heavy crude to make it fit for export on tankers.
source: Financial Tribune
Top News
Six last month
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Gold price faces worst week since 2021 as Fed signals no rate-cut rush
Gold loses some luster after Trump’s decisive win
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Hedge funds slash bullish wagers on gold over Trump election win
Resolute Mining says it will pay Mali $160 million in tax dispute
Families gather at South African mine shaft where hundreds are feared stuck underground
Higher silver supply to reduce global deficit by 4% in 2024
BHP to spend up to $14 billion on Chilean copper expansion
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
China’s germanium, gallium ban could cost the US $3.4 billion
South Africa police standoff with illegal gold miners escalates
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Resolute Mining says it will pay Mali $160 million in tax dispute
Trump chooses oil fracking boss as energy secretary
Gold loses some luster after Trump’s decisive win
