Venezuelan crude cargoes sold under a US-facilitated program are fetching prices 30pc higher than before the forced removal of the country's president Nicolas Maduro on 3 January, US energy secretary Chris Wright said on Thursday.
President Donald Trump last week made Wright responsible for managing the sale of 30mn-50mn bl of Venezuelan crude in storage onshore and offshore, days after orchestrating Maduro's capture. Those oil sales have already raised $500mn, an administration official said. Wright said oil sales revenue will be placed in US-controlled accounts that will then flow back to Venezuela.
"We're getting about a 30pc higher realized price when we sell the same barrel of oil, than [when] they sold the same barrel of oil three weeks ago," Wright said on Thursday at a US Energy Association conference in Washington, DC.
Venezuelan crude typically commands a significant discount to global benchmark Ice Brent because of US sanctions, Argus assessments show. Venezuelan Merey cargoes for January delivery to Chinese ports — sold before the US took over Venezuelan oil sales — were offered at a $10-12/bl discount to Ice Brent futures. At least one cargo was offered since the US raid at a $42/bl discount to Brent, with a floor of $30/bl.
Two aging, very large crude carriers operated by a sanctioned Greek shipowner departed Venezuela laden with crude in recent days for a Bahamas storage terminal, but it is not clear if those cargoes are part of the US-approved sales process.
US Gulf Coast refiners, many of which were engineered to handle the type of heavy sour crude produced in Venezuela, are prepared to utilize crude from that country if it becomes available on the market, industry officials say.
"If Venezuelan crude hits the open market, that certainly will be welcomed by those US refineries, because we're equipped to run it, we have easy access to it," American Fuel & Petrochemical Manufacturers chief executive Chet Thompson said at the same conference.
The Trump administration has yet to provide details on how it will disburse the funds and whether it will authorize Venezuelan interim president Delcy Rodriguez's government to spend them. On Wednesday, Trump called Rodriguez a "terrific person" and said that her government is cooperating "very well" with US demands.
Trump on Thursday hosted Venezuelan opposition leader Maria Corina Machado in a private meeting at the White House. Trump has downplayed the opposition's role in Venezuela's future governance.
