México

Guyana

Trinidad
& Tobago

 




Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

 

U.S. oil refiners cut off from venezuelan crude after sanctions


Tim Rue/Bloomberg

A crude tanker in the water at sunset

Play video: Venezuela's Guaido Wants China to See Maduro Is Bad for Business

- Refiners sought approval to pay PDVSA for pre-sanction cargoes
- Treasury is said to insist all payments go to special account

By Jennifer A Dlouhy / Bloomberg

WASHINGTON
Petroleumworld 02 04 2019

U.S. oil refiners won't be allowed to complete shipments of Venezuelan crude they booked before the Trump administration slapped new sanctions on the Latin American nation.

U.S. Treasury Department officials have informed some companies that previously contracted cargoes won't be exempt from a new rule blocking payments to Venezuela's PDVSA, according to two people familiar with the matter. The requirement forces purchasers of Venezuelan crude to deposit payment into an account state-owned Petroleos de Venezuela SA can't touch.

The clarification puts refiners in a difficult position, as PDVSA is now demanding up-front payment before releasing any tankers bound for the U.S. But under the Trump administration's Jan. 28 sanctions, U.S. companies are barred from doing business with PDVSA.

Two vessels contracted for Valero Energy Corp . and one belonging to Chevron Corp . are anchored in Venezuela, awaiting payment. A fourth tanker booked by Chevron may be rerouted without getting the oil it came for, according to tanker tracking data compiled by Bloomberg.

For days, refiners had asked the Treasury Department to issue some clarification on the new sanctions, including assurances freeing them to pay PDVSA for transactions arranged before the restrictions were imposed. Officials now insist that payment for those previously booked cargoes go into the special account, even for deals with different payment terms inked prior to the imposition of sanctions on Jan. 28, said the people, who asked for anonymity to discuss the matter.

Newly released Treasury Department guidance did not include language allowing payment to PDVSA for earlier crude transactions. Representatives of the Treasury Department did not immediately respond to an email seeking comment.

For more on tankers of Venezuela oil in Gulf of Mexico, click here

The move illustrates uncertainty over the intricacies of the sanctions while the Trump administration tries “to write the playbook” governing them, said Scott Modell, managing director of Rapidan Energy Group.

It's unclear whether U.S. refiners will actually be able to buy any Venezuelan crude during a “wind-down” period that allows those sales through April 28 -- but only as long as payments go to the special account.

Sanctions Uncertainty

“I have not heard anybody walk away with a crystal clear idea as to how they are going to proceed in the coming months,” Modell said. The administration is moving fast, both “figuring out its next moves, and, at the same time, taking a breather and working with people in the industry to explain what they just did.”

A Valero spokeswoman did not respond to a request seeking comment. Chevron spokesman Braden Reddall said the company does not comment on supply and trading matters.

The effect of the sanctions was immediate, as Gulf Coast refiners scrambled to find alternative supplies of heavy crude. Meanwhile, companies halted plans to sell petroleum products to Venezuela, including diluents used to facilitate pipeline shipment in the country. On Tuesday, one petroleum-loaded tanker bound for the Latin American country did a U-turn in the Gulf of Mexico.

— With assistance by Lucia Kassai, and David Wethe

Original article

 

_________________________



We invite you to join us as a sponsor. Circulated Videos, Articles, Opinions and Reports which carry your name and brand are used to target Entrepreneurs through our site, promoting your organization’s services. The opportunity is to insert in our stories pages short attention-grabbing videos, or to publish your own feature stories.

_________________________

Story by Jennifer A Dlouhy from Bloomberg.


bloomberg.com 02 01 2019

_________________________

We invite all our readers to share with us
their views and comments about this article.

Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95, '98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1


 

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2019, Elio Ohep A. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2019, Petroleumworld ™  / Elio Ohep - All rights reserved

 

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.