Venezuelan Oil Faces Further Discounts Amid Rising Maritime Transport Costs

Venezuelan oil is facing further discounts due to rising maritime transport costs. Marketing companies Vitol and Trafigura are seeking larger discounts on Brent crude, offering between $18 to $20 per barrel below Brent for shipments destined for the US and Europe. This reflects the growing importance of logistics costs in crude oil marketing.

Transporting cargo from Venezuela to the US Gulf Coast has become more expensive, with chartering an Aframax tanker now costing around $3.5 million, equivalent to about $5 per barrel. At the beginning of the year, that same journey cost approximately $1.35 million, or close to $1.90 per barrel.

PDVSA has recently agreed with some joint venture partners on prices located between $12 and $13 per barrel below Brent, but current market conditions have led some participants to resell shipments to intermediaries at discounts close to $16 per barrel compared to the international benchmark.