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Venezuela exhausts gasoline, more diesel en route

  • Market: Oil products
  • 17/07/20

Venezuela's state-owned PdV is down to its last drops of gasoline and blendstock, but it has more breathing room on diesel thanks to a loophole in US sanctions and the lopsided structure of the local fuel market.

Wholesale stocks of gasoline, Venezuela's main motor fuel, have been mostly depleted at the 305,000 b/d Cardon refinery, which has emerged as a de facto fuel hub at a time of chronic scarcity. According to a confidential 15 July fuel report seen by Argus, Cardon had stocks of just 15,140 bl of 91-octane gasoline and 1,890 bl of 95-octane grade.

The gasoline stocks have returned to critically low levels after PdV exhausted Iranian shipments that arrived with fanfare in late May and early June, flying in the face of US sanctions that are designed to choke off supply as a part of a "maximum pressure" campaign to force out President Nicolas Maduro.

PdV is producing only around 25,000 b/d of gasoline at Cardon, where repairs aided by Iran and China have had limited results so far. But the blendstock alkylate that was also provided by Iran has also run out, and the report shows that VGO blendstock is low. A separate PdV report obtained by Argus indicates that the company's MTBE production at its Super Octanos plant in the Jose petrochemical complex has been down since February mainly because of a lack of isobutane.

Before the US imposed oil sanctions in January 2019, PdV used to import gasoline and components from the US to supplement domestic production from its refineries, most of which are now out of service.

Venezuela's fresh gasoline shortage is evidenced by the return of lengthy vehicle lines at the dwindling number of service stations that remain open, including stations selling subsidized fuel and others featuring dollarized prices under a new pricing and rationing system unveiled by the government in late May.

In the case of diesel, the fuel report shows Cardon stocks at 217,060 bl, including 20,730 bl with 0.1pc sulphur content and 83,050 bl with 0.7pc sulphur.

PdV is receiving ultra-low diesel imports through crude and debt swaps with Spain's Repsol and Italy's Eni under an unwritten exception to the US oil sanctions. The loophole, which is drawing increasing scrutiny from the US administration, is intended to meet the needs of food distribution, agricultural activity and power generation. Another cargo of diesel is expected to arrive from Spain later this month, according to shipping sources.

Unlike gasoline, diesel is still sold at giveaway prices at the pump, but its road use remains limited, even among distribution companies which often use small gasoline-operated trucks or cars. One beleaguered distributor who has been forced to buy costly black market gasoline told Argus that diesel trucks would be ideal under the circumstances, but only used ones are available for sale at exorbitant prices.

Vital supply

Particularly in the context of the Covid-19 pandemic, diesel is considered vital for small power-generating units, including those that ensure supply to hospitals during frequent blackouts on the grid.

That humanitarian application is the grounds for Indian Reliance's return to lifting Venezuelan crude early this month in exchange for diesel after successfully petitioning the US Treasury's Office of Foreign Assets Control (Ofac), the agency that administers sanctions. Several shipping companies, wary of US sanctions, have also claimed the humanitarian exemption.

Before Venezuela's economy collapsed, gasoline demand hovered around 350,000 b/d, while diesel stood at 200,000 b/d, including power generation.


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10/02/25

Noboa's tight lead triggers runoff in Ecuador

Noboa's tight lead triggers runoff in Ecuador

Quito, 10 February (Argus) — Ecuador will hold a second-round presidential election on 13 April after incumbent President Daniel Noboa had a closer-than-expected lead over his main challenger in Sunday's election, the electoral authority said. Noboa had 44.5pc of votes as of 11:30pm ET on Sunday, closely followed by Luisa Gonzalez, the candidate for the Citizens' Revolution party with 44.1pc, with 80pc of votes counted, the national electoral council (CNE) said. Ecuador's presidential election goes to a second round if the winning candidate does not have more than 50pc of votes or 40pc of votes with a 10-percentage point lead over the runner-up. Gonzalez' party was founded by exiled former president Rafael Correa, a close friend and supporter of Venezuelan president Nicolas Maduro. Correa guided taking on crude-backed loans from China during his term and oversaw a rewrite of the constitution, allowing him to serve for 10 years. Gonzalez in brief comments said she was optimistic about winning the second round, while Noboa did not speak publicly. This is the first time since 2006 that the candidate with Correa's party did not win at least the initial round of a presidential race. Pachacutik candidate Leonidas Iza was in third place with 4.8pc of votes. His party is the political arm of the Confederation of Indigenous Nationalities (Conaie) that led an 18-day national strike in June 2022, cutting Ecuador's crude production by 17pc that month. The remaining 13 candidates obtained about 6.6pc of the valid votes. About 13.7mn Ecuadorians were required to appear at the polls. Voting is mandatory in the South American country, but only around 85pc actually voted. Ecuadorians also voted for 151 members of the national assembly. Gonazalez' party and Noboa's National Democratic Action party are forecast to win the biggest shares, but officials results will not be known for several days. By Alberto Araujo Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Trump planning rollout of 'reciprocal' tariffs


07/02/25
News
07/02/25

Trump planning rollout of 'reciprocal' tariffs

Washington, 7 February (Argus) — President Donald Trump is considering announcing "mostly reciprocal tariffs" on an undisclosed number of countries early next week, in a possible shift from a campaign plan to impose universal tariffs of 10-20pc against all imports to the US. Trump did not provide specifics on the idea, but said he would probably have a meeting on 10 or 11 February before making an announcement. The potential rollout of the reciprocal tariffs appears likely to take place after China's planned 10 February date to start collecting a 10pc tariff on crude, coal and LNG from the US that Beijing imposed in response to a 10pc blanket tariff that Trump has placed on Chinese imports. "I think that's the only fair way to do it," Trump said of his plan to "probably" pursue reciprocal tariffs. "That way, nobody's hurt. They charge us, we charge them. It's the same thing. And I seem to be going in that line, as opposed to a flat fee tariff." Trump has said he views tariffs — which he says is his "favorite word" — as a virtually cost-free way to raise revenue that will cut the US trade deficit and boost domestic manufacturing, without raising prices for goods in the US. But earlier this week, Trump delayed his plan to place an across-the-board 25pc tariff on Canada and Mexico just hours before it was set to take effect, as stock markets began to plunge on the threat of the start of a damaging trade war between the US and its two largest trading partners. The vast majority of economists say across-the-board tariffs are an inefficient way of raising revenue, with costs that would fall the hardest on low-income and middle-income US consumers already reeling from years of inflation. US Senate minority leader Chuck Schumer (D-New York) on 2 February said kicking off a tariff war with Canada and Mexico "makes 100pc no sense" and would raise costs for US consumers. Trump discussed his reciprocal tariff idea today during a press conference with Japan's prime minister Shigeru Ishiba. Trump said he wants to "get rid of" the US' trade deficit with Japan he estimates is $100bn/yr, primarily by selling the country US oil, LNG and ethanol. Trump said he also spoke with Ishiba about efforts related to the "pipeline in Alaska", an apparent reference to the proposed 20mn t/yr Alaska LNG project, which is expected to cost more than $40bn and would require building a natural gas pipeline across Alaska. Ishiba said it was "wonderful" that Trump had lifted a temporary pause on LNG licensing on his first day in office, and said Japan was interested in purchasing US LNG, ethanol, ammonia and other resources as a way to cut down on the US trade deficit with Japan. "If we are able to buy those at a stable and reasonable price, I think it would be a wonderful situation," Ishiba said through a translator. Japan is keen to increase its overall investment in the US to $1 trillion, Ishiba said. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Crude Summit: P66 eyes US northeast renewables: Update


07/02/25
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07/02/25

Crude Summit: P66 eyes US northeast renewables: Update

Adds info on SAF, other details. Houston, 7 February (Argus) — US refiner Philips 66 is weighing producing renewable fuels in the northeastern US if more states adopt low carbon fuel standards. The company is considering producing renewables at its 258,500 b/d Bayway refinery in Linden, New Jersey, if state mandates are approved and implemented, vice president of renewables Suresh Vaidyanathan said on the sidelines of the Argus Global Crude Summit Americas in Houston, Texas, on Friday. The renewables could be processed along with traditional fuels at the refinery. Bayway is the largest refinery on the US Atlantic coast. Phillips 66 could possibly produce renewable diesel or sustainable aviation fuel (SAF) at the refinery, depending on the specifics of the state laws, Vaidyanathan said. The company said it is "constantly evaluating all of our assets for lower carbon opportunities." New Jersey senators last year proposed legislation to establish what could be the first US east coast clean fuels mandate. In New York, bills to establish a clean fuel standard now count the majority of the state assembly and senate as co-sponsors. But similar proposals have stalled in prior years, in part because some progressive lawmakers worry about potentially boosting biofuels at the expense of electrification. New York state agencies are separately studying the potential impacts of a "clean transportation standard" but have given no indication of when they could release their findings. Phillips 66's Rodeo renewables plant in California reported throughputs of 42,000 b/d in the fourth quarter of 2024 after beginning full operations last year. Phillips 66 said today it is producing SAF at the Rodeo refinery. United Airlines announced in December that it agreed to buy SAF from Phillips 66's Rodeo facility as soon as the product came online. Phillips 66's renewable fuels business logged a $28mn profit in the fourth quarter of 2024 driven by higher margins at the Rodeo complex and stronger international results. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Crude Summit: Asset-backed oil trades on the rise


06/02/25
News
06/02/25

Crude Summit: Asset-backed oil trades on the rise

Houston, 6 February (Argus) — Asset-backed trading is becoming commonplace in the oil industry as companies up and down the supply chain bring capabilities in-house, delegates heard at the Argus Global Crude Summit Americas in Houston, Texas, today. "Traditionally, long term hedging was popular, and it still is, but in general we've seen a move towards the front end of the curve," said CME Group's managing director and global head of energy and environmental products Peter Keavey. "The risks are really in the prompt," said Keavy. "We're seeing a lot of hedging in the short term [and] that also is reflective of asset-based optimization." HC Group managing partner Paul Chapman has also noticed a continued shift in trading by banks, which either exited or scaled down operations in 2014 and 2015, to those directly in the industry. "I would argue that pretty much every single business around the world — producer, miner, refiner, retailer of fuels and major — is on some spectrum of developing some asset trading," said Chapman. "And it's driven by a need to capture more margin." Changing trade flows have naturally had a bearing on who becomes more involved in individual markets. "Over the past five years, European players have more and more exposure to US molecules, whether it be crude oil or natural gas," said Keavey, which has driven the growth of trade of WTI, RBOB, gasoline, and heating oil in international markets. Changing energy policy, and policies to reach other political objectives, have a tendency to shape energy flows, whether they are intended or not, the speakers said. The Russian-Ukraine conflict is a prime example, and there are clear signs that US president Donald Trump's second term in office will do the same. "As this world gets more shaped by trade wars and there's more and more government intervention, that itself starts to break down some of the fundamentals of how some of these markets work," said Chapman. Keavey expects Canadian crude to continue to flow even under a Canada-US trade war, but "the question is, what disruption happens to the pricing?" By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Mexico factory activity weakens in Jan


06/02/25
News
06/02/25

Mexico factory activity weakens in Jan

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