Global Refiners Bypass Oil Traders to Buy Venezuelan Crude Directly
Commodity traders like Vitol and Trafigura are losing their dominant position in the Venezuelan crude market as refiners and major oil producers sign direct supply agreements with state-run PDVSA. Six months after traders reopened Venezuela's oil market, Phillips 66 and India's Reliance Industries have secured direct contracts, with Valero and Thailand's Tipco expected to follow. The traders previously held a temporary monopoly due to exclusive U.S. licenses until June 2027, moving over 100 million barrels in six months. However, PDVSA is reverting to its pre-2019 business model of direct sales to refiners, allowing it to capture higher prices by eliminating intermediary premiums. Chevron has expanded its Venezuelan exports to 293,000 bpd and secured new drilling rights. European majors Repsol and Eni are also lifting crude directly to offset receivables. Despite the shift, Venezuela faces severe shortages of oilfield services and equipment, limiting production growth.
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