Oil Traders Demand Steeper Discounts on Venezuelan Crude

Oil trading firms Vitol and Trafigura are demanding steeper discounts on Venezuelan crude oil to offset record-high global shipping costs. The two firms, which manage more than half of Venezuela's exports, are bidding $18 to $20 below the Brent benchmark for cargoes destined for the United States and Europe.

This shift follows a surge in freight rates caused by shipping attacks since February. Chartering an Aframax tanker from the port of Jose to the U.S. Gulf Coast now costs approximately $3.5 million, a significant increase from $1.35 million at the start of the year.

These demands increase pressure on the state oil company PDVSA and its joint venture partners, who had previously agreed to discounts of $12 to $13 below Brent. The pricing dispute complicates efforts by the United States government to reactivate the Venezuelan oil sector following the capture of President Nicolas Maduro in January.