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
Venezuela reviewing latest ad-hoc oil contracts
Venezuela reviewing latest ad-hoc oil contracts
Caracas, 27 February (Argus) — Venezuela's state-owned oil firm PdV is reviewing 26 joint ventures granted from 2024-2025 to align them with changes to the hydrocarbons law or cancel them after the US has demanded reforms for investors. Now president Rodriguez began implementing new types of joint ventures, including some known as productive participation agreements (CPPs), after she took on the role of oil minister in October 2024 as part of her vice presidency. The arrangements could be retrofitted to match provisions under the recently modified hydrocarbons law, one PdV source told Argus , but more likely they may be cancelled. The 26 oil contracts granted after the ouster and arrest of former oil minister Pedro Tellechea in October 2024 and before the US seized former Venezuela leader Nicolas Maduro on 3 January are being reviewed, the PdV source said. Of those, 13 are CPPs. The PdV source said the US is pressuring Rodriguez to end those contracts since most of the other partners are non-US or little-known entities. "I think they will all be suspended," the source said. "What the Americans have told us is [any deals] need to be authorized by us." Rodriguez and Maduro granted the 26 deals in the two years but provided few public details. Even after Maduro was arrested on 3 January, Rodriguez still described the CPPs as a way forward to increase Venezuelan oil production. But once the law was modified the government and its partners were granted six months to adopt the contracts to the new law or cancel them. Sources say the arrangements were doomed to fail, since they were laboring from the beginning under the weight of US sanctions that are only now beginning to be lifted. "She granted two dozen contracts, but only five of those ... are in actual production", a former Venezuelan oil minister said. "Eliminating or retooling those contracts will have zero impact on production." Retooling those agreement or granting new ones may instead help to increase Venezuela's production from its plateau of about 1mn b/d in recent months. By Carlos Camacho Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US asks court to allow sale of Venezuela cargo, tanker
US asks court to allow sale of Venezuela cargo, tanker
Washington, 27 February (Argus) — US federal prosecutors are asking a federal court to approve the sale of a tanker seized near the coast of Venezuela in December and the 1.8mn bl cargo of Venezuelan crude it was carrying at the time. The US Coast Guard seized the Skipper on 10 December, as the first step in an operation that eventually resulted in the ouster of Venezuelan president Nicolas Maduro and the US takeover of Venezuelan oil exports. US naval vessels have seized nine other Venezuelan crude-laden tankers since then. The cargo aboard the Skipper is the first to face formal action in the US District Court for the District of Columbia. The US justifies the seizure of the tanker by its association with Iranian oil trade since 2023, even though it was last transporting Venezuelan crude meant to be delivered first to Cuba and then to a destination off the coast of Malaysia. Tankers carrying Venezuelan and Iranian crude frequently use international waters near Malaysia for ship-to-ship transfers to facilitate deliveries to independent refiners in China. The Skipper is currently anchored off the Texas coast, according to the Department of Justice and ship tracking services. The Justice Department emphasized the Iran connection in the court action it is requesting. "This forfeiture complaint for the M/T Skipper and its oil cargo demonstrates the FBI's unwavering commitment to enforcing US sanctions and thwarting hostile regimes who exploit the global oil trade," FBI director Kash Patel said. US courts in recent years approved the sale of Iranian cargoes aboard tankers seized by the US Navy, but the US authorities typically released those tankers to their ultimate owners. The federal court will set a precedent if it approves the sale of the tanker as well. US courts have approved warrants to seize the Skipper and the other nine tankers carrying Venezuelan crude, but it is not clear if the US will ask the courts to sell all of them. The US has been returning tankers seized since Maduro's ouster to ports in Venezuela, US secretary of state Marco Rubio told a Senate panel last month. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Venezuela's US crude flows far shy of Trump's claims
Venezuela's US crude flows far shy of Trump's claims
Houston, 25 February (Argus) — Flows of Venezuelan crude to the US have increased after the US seized its former president in early January, but not to the level of 80mn bl as US president Donald Trump claimed in his State of the Union address on Tuesday night. "We just received from our new friend and partner, Venezuela, more than 80mn bl of oil," Trump said, adding he will continue "working closely with the new president of Venezuela, Delcy Rodriguez, to unleash extraordinary economic gains for both of our countries". The US directly imported closer to 17.7mn bl, or roughly 300,000 b/d, of Venezuelan crude in January and February so far this year, according to Vortexa ship tracking data. This comes after the US military seized former president Nicolas Maduro in a violent raid on Caracas on 3 January. Rodriguez was Maduro's vice-president and most of his socialist collaborators remain in power. Trump's 80mn bl figure would more closely correspond to US imports of Venezuelan crude in all of 2025 and so far in 2026. It would roughly correspond to Venezuela's total production since early December, of about 1mn b/d, when the US began seizing sanctioned crude tankers after a military build-up in the region. At least 8mn additional bl of Venezuelan crude still appear to be on the water in seized sanctioned tankers. Rodriguez's government has asked the US to seize sanctioned tankers following Maduro's capture, US secretary of state Marco Rubio said. But Venezuelan crude flows out of Venezuela have increasingly been transported on mainstream tankers, rather than shadow fleet vessels . The US has also been controlling most of Venezuela's crude sales since the 3 January raid, limiting sales to or through sanctioned countries. Trump punctuated his speech with multiple references to the US raid in Venezuela, which led to dozens of Venezuelan and Cuban security forces killed but no fatalities for the US. Some seven US soldiers were wounded, and Trump recognized with a Medal of Honor one helicopter pilot severely wounded during the attack. Trump, speaking before Congress, also brought out a Venezuelan politician, Enrique Marquez, who had been freed in Rodriguez's recent prisoner releases. Marquez surprised his niece, who was a guest at the State of the Union address. By Carla Bass and Charlotte Bawol Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US to allow resale of Venezuelan oil to Cuba
US to allow resale of Venezuelan oil to Cuba
Washington, 25 February (Argus) — Washington will allow the sale of Venezuela-origin crude and refined products to Cuba via authorized intermediaries, US sanctions enforcers said Wednesday. The US Department of Treasury's sanctions enforcement arm, the Office of Foreign Assets Control (OFAC), said it would approve applications from third parties looking to resell Venezuelan crude and products to Cuba, citing "the United States' support and solidarity for the Cuban people". The sales will have to conform to the same conditions as the US-authorized transactions with Venezuelan state-owned PdV, including a requirement to deposit sales revenue into a US-controlled bank account. But OFAC clarified that it could issue Cuba resale authorizations to non-US companies as well. OFAC limits direct purchases from PdV to "established US entities", meaning companies with established presence in the US on or before 29 January 2025. Cuba is facing drastically reduced access to crude and refined products following the US takeover of Venezuelan crude sales last month and pressure from Washington on Mexico to curb its state-owned Pemex's supply to the island. The Wednesday guidance from OFAC in practice would allow shipments of refined products only for select "humanitarian" purposes, as it bars sales to companies associated with the Cuban military, intelligence services or other government institutions. It is not clear if jet fuel sales to airports would fall into the allowed category. Cuba is also allowed to import crude and refined products from the US, subject to the same constraints on buyers. Such sales require authorization from the US Department of Commerce, rather than OFAC. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Map: Primary Venezuelan oil assets
Explore our related products
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
