Page 9 - LatAmOil Week 28 2022

LatAmOil VENEZUEL A LatAmOil

However, there have been no formal changes in might arrive in the US Gulf Coast (USGC) mar-
US policy that would allow a company such as ket without penalties and at competitive prices
Citgo to import Venezuelan crude. would have to be evaluated as a potential source
Carlos Jorda, the CEO of Citgo, commented going forward.
on the matter at a recent online conference on Chevron, the last remaining US major to
Venezuela’s foreign energy assets. “To be com- maintain a token presence in Venezuela, would
petitive in this market, we have to buy the cheap- undoubtedly agree. The company is not actively
est and most convenient oil. We shouldn’t be at a producing oil in Venezuela, but it is seeking
disadvantage,” he said, comparing his company’s approval from the US Department of the Treas-
position to that of other refiners. ury to import Venezuelan oil into the US and
Horacio Medina, the chairman of a board ultimately hopes to regain operational control of
that oversees Citgo, echoed Jorda’s sentiment. its joint ventures in the South American coun-
He explained that any Venezuelan crude that try. ™

Shipments to Europe help boost

Venezuelan oil exports in June

VENEZUELA saw exports of crude oil and Ukraine in late February. Those efforts, in turn,
refined fuels rise by 61% last month as it have opened the door to improved relations
resumed shipments of crude to Europe for the between Venezuela and the US.
first time in two years. Washington’s decision to approve Venezue-
According to data from Refinitiv Eikon cited lan oil deliveries to Europe also came as US offi-
by Reuters, Venezuela’s national oil company cials paid a trip to Caracas to discuss the release
(NOC) PdVSA and its joint ventures exported of US political prisoners. Ultimately, though, the
630,500 barrels per day (bpd) of crude and fuel US delegation failed to secure the jailed citizens’
on average in the month of June. This marks a release.
significant rise from the previous month but is US overtures to Venezuela have support in
closely in line with the figure reported in June the international community. OPEC’s late Sec-
2021, the news agency said. retary-General Mohammad Barkindo recently
Much of the month-on-month improvement urged oil-consuming states to accept deliveries
in June came as a result of the slump that resulted from Iran and Venezuela on the grounds that
from PdVSA decision in May to begin requiring these two countries can help alleviate the oil
pre-payment for cargo shipments. That policy shortages caused by Russia’s effective departure
shift caused exports to slip significantly. from the world oil market. The French govern-
Asia was the main destination for most of the ment has echoed this sentiment, calling for all
additional volumes exported in June, absorbing options to be explored so that Russian supplies
about two thirds of the total. Cuba was another can be made up elsewhere. ™
major destination, as it imported 66,400 bpd of
crude oil, gasoline, diesel and residual fuel oil in
an effort to meet local demand and overcome
the obstacle of rising world prices.
As noted above, another factor contribut-
ing to the month-on-month rise in exports was
the resumption of Venezuelan oil shipments to
Europe after a two-year hiatus. Italy’s Eni and
Spain’s Repsol obtained a green light from the
US State Department to move Venezuelan crude
cargoes to Europe in June. These two companies
had been the last two European operators to
remain active in the South American country
since Washington began imposing sanctions
on Caracas designed specifically to discourage
investment in the Venezuelan oil industry.
The US government’s decision to green-light
the shipments was part of a wider effort to help
European nations overcome the energy deficit
that has emerged as a result of the decline in
Russian imports since the start of the invasion of Venezuela opens up the taps (Photo: Twitter/@PDVSA)

Week 28 14•July•2022 www. NEWSBASE .com P9