Key facts
- Commodity trading major Vitol is planning to establish a presence in Venezuela.
- Vitol is already exporting Venezuelan crude following a deal struck with the U.S.
- Vitol and Trafigura previously agreed to sell 100 million barrels of Venezuelan crude.
- Venezuela's May exports reached an estimated 1.25 million bpd, the highest since 2019.
- Energy investors are returning to Venezuela, signaling a potential rebound in oil supply.
Commodity trading giant Vitol is reportedly planning to expand its operations in Venezuela, signaling a renewed interest in the South American nation's oil sector. This move follows a significant deal struck between Vitol, Trafigura, and the U.S. government to sell Venezuelan crude.
Following the ousting of former President Nicolas Maduro and his subsequent trial in the U.S., Caracas reached an agreement with Washington that allowed for the export of Venezuelan oil. Initially, Vitol and Trafigura agreed to sell 50 million barrels of crude, a figure later doubled to 100 million barrels. Reports indicated that Chinese and Indian refiners were primary buyers, with some oil offered at a discount to Brent crude.
Henry Medina, Vitol's head of Latin America, expressed enthusiasm for deepening the company's relationship with PDVSA, Venezuela's state-owned oil company, and developing new partnerships. Venezuela's oil exports in May reached an estimated 1.25 million barrels per day, the highest level since 2019, with the United States, India, and Europe being key markets. This increase is attributed to the return of international energy investors and is expected to grow further, although production remains significantly below its peak of 3 million barrels per day from over a decade ago.