Venezuela Reopening
Overview
The lifting of US sanctions on Venezuela has triggered a new flow of Venezuelan crude into the US Gulf. These grades are being sold by merchant traders on a “delivered US Gulf” basis. Oil produced in Venezuela is heavy, sour, and asphalt-rich, and requires specialised refining units, such as cokers, for full processing. US Gulf coast refineries were built for this purpose, and have the appetite to process large volumes of these crudes.
Argus has launched three new price assessments for Venezuelan crude oil to better reflect the new market. Effective Monday, 9 February, Argus assesses Merey, Hamaca, and Boscan, all on a “delivered US Gulf” basis. See key price pages for more details.
Price assessment details
Argus Merey del USGC
While offers have emerged for Venezuelan crudes in India, Asia and Europe, trades for Merey have only been completed in the USGC, where multiple refiners have purchased cargoes of the grade. Transactions have occurred on a delivered USGC basis and against the Ice Brent pricing benchmark, which is widely used to price Latin American grades on the water.
Argus Boscan del USGC and Argus Hamaca del USGC
Due to a current lack of liquidity for these two grades, Argus prices will initially be assessed on the basis of other market information for similar grades in the region, general tendencies in the sour markets around the USGC and quality spreads to Merey, which are widely discussed by market participants and are relatively stable. Should activity for these grades pick up, Argus will also take into consideration any bids, offers and deals that emerge in the spot market to further inform the assessments.
Expectations are that sales will remain concentrated around the USGC on an Ice Brent basis for the foreseeable future. Argus will also publish an equivalent differential for all three Venezuelan grades against the Argus WCS Houston price, given Venezuela crude is a close alternative to Canadian supplies, and more specifically WCS. This WCS basis price will allow for hedging as there are actively traded futures swaps based on the Argus WCS Houston price on both major exchanges. These financial contracts settle on the month average of Argus WCS Houston daily published prices.
Related news and analysis
Chevron to invest $7bn in Venezuela: Update
Chevron to invest $7bn in Venezuela: Update
Adds comments by Chevron chief executive officer Mike Wirth New York, 2 September (Argus) — Chevron agreed to spend more than $7bn over the next five years to double its production in Venezuela, as part of US president Donald Trump's drive to revive the South American nation's long-neglected oil sector. The US major won the rights to develop two new oil fields in the prolific Orinoco Belt, where it has been increasing extra-heavy oil production, after negotiating improved fiscal, commercial and legal terms. The Petroindependencia joint venture, in which Chevron holds a 49pc interest, will develop the Carabobo 1 and Carabobo-2-South-A sites under the agreement. Chevron says the new contracts will help it double Venezuelan output to around 600,000 b/d from 2026 levels, with total costs of below $20/bl. "With improved terms and additional acreage, we are strengthening a portfolio that we believe can deliver attractive low-cost oil growth, support energy supply and create differentiated long-term value," said chief executive officer Mike Wirth. Trump's push to reopen the South American nation's oil sector following the capture of former Venezuelan president Nicolas Maduro in January has met with mixed success so far. Some US producers have been wary about returning to Venezuela, given past asset seizures and also what they see as the need for improved terms around contract sanctity and security guarantees first. While some smaller independents have signed deals, bigger producers such as ExxonMobil and ConocoPhillips have remained on the sidelines. And billions of dollars of investment will still be required to restore Venezuela's energy industry following decades of mismanagement. Chevron's agreement is separate to US government plans to take a 35pc stake in a privately-owned company — North American Blue Energy Partners — that has been granted 100-year concessions for 17 oil fields in Venezuela with proven reserves of around 65bn bl. Earlier this year, Chevron increased its interest in Petroindependencia and gained the rights to develop the Ayacucho 8 area next to the Petropiar joint venture. Its three projects in Venezuela have increased output by 15pc to about 280,000 b/d this year. Still, it will take some time for overall Venezuelan oil output to recover to the levels of more than 3mn b/d seen in the late 1990s, given the essential repairs to infrastructure needed. Wirth played down the suggestion that Chevron's growth plans could help alleviate supply shortages from disruptions in the strait of Hormuz arising from the US-Iran war. "These things work on different time cycles, so the investment in growth here in Venezuela will take years," he said on Bloomberg Television. The US major, which traces its presence in Venezuela back to 1923, has a head start over rivals after maintaining a presence in the country during the sanctions era. Chevron is involved in three joint ventures, two of which operate in the Orinoco Belt, and a third in Zulia state in western Venezuela. "Our expanded position reflects our confidence in the country's deep resource potential and its ability to compete for investment within our portfolio for decades," Wirth added. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Trump claims Venezuela oil reserves takeover
Trump claims Venezuela oil reserves takeover
Washington, 28 August (Argus) — The US will take "majority control" of 65bn bl of Venezuela's oil reserves in partnership with unnamed private companies, President Donald Trump claimed on Friday. Trump said that secretary of state Marco Rubio and defense secretary Pete Hegseth worked with Venezuela's interim president Delcy Rodriguez to secure the reserves deal, "at no cost to the American Taxpayer". The White House did not immediately provide any details of the purported US-Venezuela agreement. The deal would more than double proven US oil reserves, Trump said. He added that it "will substantially lower Gas Prices for all Americans, long into the future, while helping to continue to set Venezuela on a course toward Tremendous Success and Great Prosperity," in a post on his social media platform. US proven oil reserves stood at 46bn bl as of 2024, according to the latest data made available by the Energy Information Administration. The Venezuelan government estimates the country's proven oil reserves at 303bn bl, based on a decades-long assessment. Some of the US' top oil companies are still sitting on the fence when it comes to returning to Venezuela, but investing there seems a more attractive proposition now than it did in January, given supply disruptions from the Iran war. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Citgo sees record ULSD exports at Texas terminal
Citgo sees record ULSD exports at Texas terminal
Houston, 13 August (Argus) — US-based refiner Citgo reported record high exports of ultra-low sulphur diesel (ULSD) from its terminal in Brownsville, Texas, in the second quarter, as the prolonged US-Iran war limited global supplies of the fuel. ULSD export sales at Brownsville in the second quarter more than doubled the previous high set in the third quarter of 2025, Citgo said in an earnings release. The company did not disclose specific volumes. US fuel prices, especially distillates, have soared since late February because of global supply shortages caused by the US-Iran war. The higher distillate prices have led many US refiners to maximize diesel yields, with Citgo saying its 471,000 b/d Lake Charles refinery in Louisiana reached record distillate production in April. US independent refiner Marathon Petroleum also recently cited demand in Latin America and Europe for its booming diesel business, while Chevron pointed to an increase in European diesel demand as one reason for an expected tighter products market in the third quarter. Citgo said on Thursday that its overall international market activities in the second quarter were led by cargoes delivered to Europe, the Caribbean and South Africa. Citgo reported a profit of $936mn in the second quarter, up from $100mn in the second quarter of 2025 on strong refining margins. Auction and arrest limbo Citgo's status has been unclear for many years as its three US refineries, lubricant plants and midstream and retail assets are being auctioned off in a US court to satisfy debt defaults and expropriations owed by its parent company, Venezuelan-owned PdV. A US federal judge in November affirmed a $5.9bn bid from Amber Energy, an affiliate of New York hedge fund Elliott Investment Management, as the winner in the auction. Amber's bid included a separate agreement to settle litigation claims with 75pc of a group of PdV bondholders for $2.13bn. The sale is not finalized and appeals in the case are pending in a US court. The US' arrest of former Venezuelan president Nicolas Maduro on 3 January and the lifting of sanctions on Venezuela's oil exports have added new uncertainties to Citgo's fate. Even though it is owned by PdV, Citgo has operated under a board appointed by the Venezuelan opposition and vetted by the US government since 2019, after the US denounced Venezuela's 2018 presidential election as illegitimate. Since then, the US has recognized the government led by interim president Delcy Rodriguez, a long-time Maduro ally, and restarted diplomatic relations. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
PdV's tanker arm reemerges to control oil ports
PdV's tanker arm reemerges to control oil ports
Houston, 13 August (Argus) — Venezuela's state-owned oil and products shipping arm, PdV Marina, has moved into a more central position in managing crude and product shipments as the US has exerted control over the sector since its 3 January takeover, sources say. PdV Marina now handles all operations related to oil ports, taking that function from the national ports authority, Bolivariano de Puertos, a source in the operations department of PdV Marina who asked not to be named said. The arm is also now also overseeing loadings out of Venezuelan ports by Trafigura and Vitol, the two international traders most active in Venezuela after the US government approved them to market unsanctioned Venezuelan oil. PdV Marina receives reports and daily cargoes schedules but most of the shipments are carried out on tankers not owned by PdV Marina. PdV Marina also in November had suspended a joint venture with Cuban state-owned Cubametales, which was a previous buyer of Venezuelan crude and has been sanctioned by the US since 2019. Venezuela — previously Cuba's main supplier of oil — has sent no new shipments to Cuba since the US arrested former leader Nicolas Maduro on 3 January. PdV Marina previously focused more on management of its own fleet, which consisted of 22 tankers before former president Hugo Chavez came to power in 1999. But lack of proper maintenance has reduced the number of working tankers to five, pushing PdV to use more chartered vessels. PdV Marina's involvement in Venezuela's crude flows had dwindled in recent years, especially after a series of corruption allegations related to the mismanagement of funds meant to modernize and repair tankers under the former administration of Adan Chavez in 2020. Some $3bn in cyptocurrency funds that Venezuela's government said in 2023 that it had lost was also related to port management, as much of the funds dealt with unpaid crude already shipped by Venezuela . The port management change is part of a broader strategy by the US to exert its influence both in Venezuela's oil shipments as well as at ports of call in central and South America, a former supervisor at PdV Marina and current lecturer in maritime and energy issues said. The source also asked not to be named. PdV through PdV Marina has been part of the International Ship and Port Facility Security Code mechanism crested in 2004 by the International Maritime Organization to strengthen security and safety measures. Improving infrastructure and overhauling Venezuela's oil ports and tankers to better comply with the code will be essential for Venezuela to further increase it oil output from 1.2mn b/d, industry sources have said. US refiners have indicated that they are eager to absorb more Venezuelan crude , and US imports from Venezuela hit their highest in nine years at 743,000 b/d in the latest week, according to preliminary US Energy Information Administration data. By Jose Chalhoub Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Map: Primary Venezuelan oil assets
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Key price assessments
Crisis en Venezuela y su impacto en los mercados de crudo
La intervención de Estados Unidos en Venezuela ha generado incertidumbre y gran expectativa en los mercados de crudo tanto a nivel global como regional ¿Cómo han evolucionado los precios desde entonces? ¿Qué escenarios se pueden anticipar en un contexto de tanta volatilidad?
Regístrese ahoraTimeline: Key Venezuela sanctions dates
