Home / Business and Economy / Citgo Buys Venezuelan Crude After 5-Year Ban
Citgo Buys Venezuelan Crude After 5-Year Ban
29 Jan
Summary
- Citgo purchased Venezuelan crude for the first time since 2019.
- The deal involves 500,000 barrels for February delivery.
- This marks a milestone in normalizing Venezuelan oil sales.
U.S. refiner Citgo Petroleum has acquired Venezuelan crude oil, marking its first purchase since severing ties with its parent company, Petroleos de Venezuela (PDVSA), in 2019. This significant development involves a cargo of roughly 500,000 barrels for February delivery, sourced from Trafigura.
Citgo had been prohibited from accessing Venezuelan barrels since 2019, following U.S. sanctions imposed on Venezuela's energy sector. The refiner has since utilized alternative heavy crude grades and domestic U.S. crudes to meet its needs. This recent purchase is a pivotal moment in efforts to normalize and potentially increase Venezuelan oil exports.
The deal facilitates Citgo's access to its most suitable crude for processing and aids Venezuela in resuming international oil sales. This follows a recent agreement between Washington and Caracas, paving the way for increased oil marketing and exports from Venezuela.
