Valero, Phillips 66 Buy Venezuelan Crude in First U.S. Gulf Coast Deals via New Trading Licenses

Valero Energy has purchased a cargo of Venezuelan crude oil, sources said on Wednesday, marking one of the first deals by U.S. Gulf Coast refiners under Washington’s agreement with Caracas to export up to 50 million barrels. Phillips 66 has also bought a cargo, according to one source. Both cargoes were purchased from trading house Vitol and are set for delivery to the U.S. Gulf Coast at a discount of around $8.50 to $9.50 per barrel to Brent crude.

Vitol and rival Trafigura were among the first trading firms granted U.S. government licenses to trade Venezuelan crude following President Nicolas Maduro’s ouster in early January. While Valero and Phillips 66 have previously bought Venezuelan oil through Chevron’s partnership with the Venezuelan state oil company, these transactions represent their first direct purchases from the newly authorized trading houses. Valero, Vitol and Phillips 66 did not immediately respond to requests for comment, and the White House also did not respond.

Sources said Vitol and Trafigura acquired Venezuelan crude at a steeper discount of about $15 per barrel to Brent, with traders expected to bear shipping costs to the U.S. Gulf Coast estimated at $2.5 to $3.5 per barrel—leaving a margin of roughly $2 to $4 per barrel on resale. Offers of Venezuela’s flagship Merey heavy crude reportedly weakened due to limited interest from U.S. and Indian refiners. Prior to 2019 sanctions, U.S. Gulf Coast refineries processed as much as 800,000 barrels per day of Venezuelan heavy oil, according to U.S. government data.

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