Sanctioned Venezuelan crude starts flowing into US

Catogory : Market Report

A TANKER laden with US-bound Venezuela crude has discharged its cargo at Citgo’s terminal at Corpus Christi, suggesting it may be the first to deposit funds to an account for use by any interim Venezuelan government after the imposition of new US government sanctions.  The Eagle Sapporo, an aframax tanker containing about 600,000 barrels worth around $36.8m, discharged at the Citgo terminal at the port of Corpus Christi on Sunday. From market sources and chartering data that at least a further $319m worth of Venezuelan crude cargoes are currently US-Gulf bound on five tankers, intensifying pressure on PDSVA, the national oil company funding Nicolas Maduro’s government.PDVSA is diverting exports to Asia from the US and Europe, as stalled cargoes await discharge in the US Gulf or sit off its oil terminals.

The US Treasury sanctions, introduced on January 28, directed sales proceeds from any oil and products shipped from PDVSA to the US to an account for ultimate access by Venezuela’s National Assembly leader Juan Guaido. Mr Guaido is recognised by the US, Canada and a selection of Latin American and European countries as an ‘interim president’. Further shipments that may be destined for the coffers of any Guaido government include the very large crude carrier Jag Laxim, waiting to berth outside the US-owned Buckeye Storage Terminal at St Lucia. The 2m bbl cargo is worth about $122.7m, based on the average Organisation of the Petroleum Exporting Countries daily price on February 8. This revenue will be diverted to an interim president unless Buckeye has a waiver, according to Source.