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U.S. Makes First Sales of Venezuelan Oil as Forces Seize Another Tanker

Proceeds are parked in U.S.-controlled accounts with a primary account in Qatar.

Overview

  • Washington completed initial Venezuelan oil sales worth about $500 million under a $2 billion arrangement, and officials say additional transactions are imminent.
  • The revenues remain in bank accounts controlled by the U.S. government under a recent order, with industry sources pointing to a principal account in Qatar.
  • U.S. forces boarded and seized the tanker Veronica in the Caribbean, the sixth recent interdiction tied to Venezuela under the current maritime enforcement campaign.
  • The deal envisions deliveries of roughly 30 to 50 million barrels to the United States, as the administration seeks private investment to rebuild Venezuela’s oil sector.
  • Venezuelan Merey-16 crude has been offered to U.S. Gulf Coast refiners at a discount, and trading houses Vitol and Trafigura are assisting with placement of stored cargoes.