Traders Pitch Venezuelan Crude to India and China as Export Flows Poised to Restart

Global commodities traders Vitol and Trafigura have initiated discussions with major refiners in India and China about selling Venezuelan crude oil, with potential deliveries slated for March, according to multiple industry sources. The move comes as both firms firm up logistics and secure vessels to place cargoes after recent agreements with the U.S. government to market Venezuelan oil stocks that have been idled by sanctions.

Reuters reports that the initiative follows a decision by Venezuela’s interim government to allow exports of up to 50 million barrels of crude to the United States, opening the door for the OPEC nation to resume shipments that were previously stalled.

Vitol is actively engaging with Indian state-owned refiners, offering cargoes at discounts of $8 – $8.50 per barrel below ICE Brent on a delivered basis, according to trade sources. Companies such as Indian Oil Corporation and Hindustan Petroleum Corporation could consider purchasing Venezuelan crude, while Reliance Industries has also indicated it would resume buying if U.S. regulations permit sales to non-U.S. buyers.

In China, according to the Economic Times,  both traders have reached out to PetroChina to explore interest. The state-owned firm was previously a key importer of Venezuela’s heavy sour Merey grades and fuel oil before U.S. sanctions were imposed. Sources suggest traders may focus first on larger state refiners rather than smaller independent buyers.

Trafigura has confirmed plans to load its first Venezuelan crude cargo destined for the U.S. this week, while Vitol recently dispatched a U.S. naphtha shipment to Venezuela — a diluent used to facilitate the transport of heavy crude — expected to reach Puerto de José by late January.

Industry insiders say the cargoes are being offered for delivery in the second half of March, signaling a potential resumption of Venezuelan export flows that could ease concerns about supply gaps elsewhere in global oil markets.