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
Double trouble for Caracas
Double trouble for Caracas
Earthquake recovery takes centre stage, but the same uncertainties about upstream investment wait in the wings, write Carla Bass and Carlos Camacho Caracas, 10 July (Argus) — Venezuela's twin earthquakes in late June left crude and natural gas production infrastructure largely intact, despite killing thousands, even as they shifted the political ground in ways that are still emerging. The country's oil operations are concentrated in the Orinoco heavy oil belt east of Caracas and around Lake Maracaibo to the west — outside areas hardest hit by the quakes, such as the city of La Guaira. The destruction killed more than 3,800, a count that is expected to rise as thousands are still missing. The earthquakes came as Venezuela is trying to rebuild its economy and oil industry in the wake of the US' 3 January incursion.Crude production is continuing apace, most operators say. It climbed to 1.2mn b/d in June from about 1.1mn b/d in prior months, with the government aiming for 3mn b/d in 2030. Efforts to attract inward investment are also expected to continue as planned, industry sources say, although progress here was already slow as investors await greater certainty about operating in the country. Interim president Delcy Rodriguez says oil regulations she approved this week will help provide "resources for the recovery and reconstruction of our country" after the quake. The regulations are meant to implement reforms passed earlier this year to allow firms other than PdV to operate oil fields. They also simplify taxes and trim the state's share of earnings and production — Caracas' take from crude production projects has fallen to 20-35pc for most projects, down sharply from an earlier standard of 83.33pc — and create more defined royalty tiers. But Rodriguez must first get to grips with a country where many citizens want basic disaster recovery to take priority over oil contracts. Disapproval of the Rodriguez administration rose to 63pc in an AtlasIntel-Bloomberg poll conducted on 26-20 June, following the quakes, up from 59pc a month earlier. And 65pc disapprove of the government's earthquake response, according to the same poll. Pressure release The disaster could buy Rodriguez's regime a temporary reprieve from political pressure or catalyse a democratic transition, according to consultancy Teneo's political analyst Nicholas Watson. Most officials who worked under former president Nicolas Maduro — including some wanted by the US for drug trafficking — remain in place. But the US has said it is prioritising stability before moving to free elections. The US has indicated it will reinforce the status quo. This includes not opening a path for opposition leader Maria Corina Machado to visit Venezuela after the disaster, although President Donald Trump later indicated this could change. He has still expressed solidarity with Rodriguez and committed to continue disaster recovery aid, while cutting humanitarian assistance to many other countries. But in any case, investor uncertainty will do more to delay upstream development than earthquake recovery. Both existing and hopeful new producers have lined up to sign initial agreements, but "the push now is to turn those into contracts", one industry source said. Contract models included in the reform are workable if not perfect, industry sources say, but the energy ministry will still have a high level of discretion. Potential newer entrants are also wary about commercialisation of production, which involves selling, for example, lighter crude to PdV and receiving potentially heavier crude or fuel oil as payment in kind. Cash flow also remains a problem. Disbursements of oil revenue that must go via a US Treasury Department fund could be more frequent, some operators say. For now, some Venezuelans' main energy concern is having natural gas supplies for cooking turned back on as pipeline and building inspections continue, if the building was lucky enough to stand. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Venezuela's president approves new oil regulations
Venezuela's president approves new oil regulations
Caracas, 8 July (Argus) — Venezuela's acting president Delcy Rodriguez and oil minister Paula Henao on Wednesday enacted the framework of regulations needed to implement recent reforms to the main hydrocarbons law. Almost 1,400 regulations issued over the last 83 years of oil activities were "studied and analyzed" in trying to incorporate best practices into the new framework, Rodriguez said during the televised event. "This is done in order to transform the [oil] reserves of our country into the development of our country," she said. "The resources for the recovery and reconstruction of our country after the dual earthquakes of June 24th are also here." The government must still publish the full text of the regulations in the official gazette. Henao had said in late May that the government would approve the regulations soon . Venezuela's government moved to open operation of its oil fields to beyond state-owned PdV and trimmed its take of earnings and production under changes to the hydrocarbon law made after the US' essential takeover of its oil sector on 3 January. By Carlos Camacho Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Venezuela earthquakes miss crude sites: Update
Venezuela earthquakes miss crude sites: Update
Caracas, 25 June (Argus) — Venezuela has declared a state of emergency as the death toll from two major earthquakes that brought down buildings in Caracas on Wednesday night reached at least 164, but most energy infrastructure was spared. The disaster comes as Venezuela has been trying to rebuild its economy and crude production since the US lifted sanctions earlier this year, in the wake of removing former president Nicolas Maduro from power. The government confirmed the latest estimated death toll and estimated that at least 971 were injured in an update on Thursday morning. Venezuela suspended operations at the Simon Bolivar airport, non-essential activities including schools and cut natural gas supply to Caracas to reduce the chance of explosions. Some looting has been reported in the hardest-hit areas, and residents on social media have complained of little immediate government presence or help. Venezuela's government said it would begin rescue and rebuilding efforts immediately with the help of many countries that offered aid. US agencies will "get ready to move quickly" to "be there for our new and great friends" in Venezuela, US president Donald Trump said on social media. The US will send search-and-rescue teams, medical and humanitarian supplies and other aid, the US State Department said. Venezuela's government said the US "has been in constant contact with Venezuelan authorities, offering support and solidarity". Rodriguez also thanked many other countries that have reached out to offer aid, including Brazil, Mexico and Guyana — with which it has a border dispute — and Russia and Cuba, which have conflicted with the US over their interests in Venezuela. Production areas unaffected No energy production operators have reported major impacts on crude production infrastructure, but assessments continue. Venezuela's oil operations are concentrated roughly 400km (250mi) east of the capital where its Orinoco heavy oil belt starts and also 520km west of Caracas around Lake Maracaibo, outside of the areas most hit by the earthquakes. Chevron, the largest non-state operator, said that all of its employees are accounted for and it remains operational. "We remain committed to supporting our employees and the communities surrounding our facilities and ensuring the continued safe operation of our assets," Chevron said. The headquarters in Caracas and operations of state-owned PdV were also not affected, the company said. It has told non-essential workers to stay home for now. "There were no damages to the La Campiña headquarters and nothing major from operational areas," PdV said. "Eastern Venezuela was largely spared ... and that is where the bulk of oil and gas production is coming from currently." Venezuela produced about 1.2mn b/d of crude in June after being at 1.1mn b/d for several months, as Trump has pushed for US and other oil companies from allied countries to invest there. By Carlos Camacho Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US defends Venezuelan oil achievements
US defends Venezuelan oil achievements
Caracas, 9 June (Argus) — The US' top envoy in Venezuela John Barrett highlighted Venezuela's crude exports reaching a multi-year high of 1.25mn b/d, which he attributed to the administration's continuing intervention. The exports are the highest in seven years and come as US authorities "continue collaborating" with the interim government of Venezuela, Barrett said. Venezuela's crude exports were slightly above 1.25mn b/d in the weeks starting 18 and 25 May, and averaged about 1.1mn b/d for all of May, based on Kpler shipping data. May's exports were the highest since February 2019, the data show. President Donald Trump's administration has stepped up efforts to showcase the increase in Venezuela's oil production and exports after the US intervention, to push back on critics of its handling of the war in Iran, which resulted in the greatest recorded disruption of global oil supply. "Venezuela really stands out as one of the great foreign policy successes of the Trump administration," assistant secretary of state Caleb Orr said at the Atlantic Council's Global Energy Forum in Washington on Tuesday. "We have more oil and gas and coal and everything else than any other country on the planet," Trump told reporters last week. "And then when you add Venezuela to it, we have probably 64pc of that type of energy." But Trump's Venezuela policy has as many critics in Congress as his approach to Iran. A group of Democratic US lawmakers on Monday renewed calls for free elections in Venezuela — the US did not recognize former leader Nicolas Maduro as president because of allegations of electoral fraud in the 2024 vote. The US left Maduro's vice-president Delcy Rodriguez in power after seizing Maduro on 3 January. "The Delcy regime is still stacked with the same Maduro regime officials, the regime has yet to outline an electoral timeline and 473 political prisoners continue to languish in prison", House Foreign Affairs Committee ranking member Gregory Meeks (D-New York) and Senate Foreign Relations Committee ranking member Jeanne Shaheen (D-New Hampshire) said in a letter to US secretary of state Marco Rubio on 8 June. "We understand that elections and a true democratic transition cannot happen overnight," the senators said. "But neither will happen at all if the Trump administration fails to exercise its leverage to insist on the necessary institutional changes that would make a democratic possible". In Caracas, relatives of political prisoners demonstrating outside the US embassy were promised individual interviews with US officials there to explain their cases. By Carlos Camacho 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
