Overview
- Citgo purchased about 500,000 barrels of Venezuelan heavy crude from Trafigura for February delivery, according to sources.
- The purchase is Citgo’s first intake of Venezuelan barrels since sanctions severed access in 2019.
- U.S. licenses authorize Vitol and Trafigura to market Venezuelan crude, and they have been selling cargoes to Valero, Phillips 66, Repsol and Italy’s Saras.
- Large volumes of Venezuelan oil accumulated in onshore and floating storage after a mid-December U.S. naval blockade, and traders are now drawing down those stocks.
- Citgo is in a court-ordered transition to an affiliate of Elliott Investment Management to satisfy PDVSA creditor claims.