US Energy Secretary says the US is getting a 30% higher price for Venezuelan crude oil sales than Venezuela did weeks prior to the political change.
WASHINGTON: US Energy Secretary Chris Wright stated the United States is securing a 30% higher price for Venezuelan crude oil than Venezuela received before recent political changes.
“We’re getting about a 30% higher realized price when we sell the same barrel of oil than they sold the same barrel of oil three weeks ago,” Wright said at a US Energy Association event.
He did not provide specific price details for the oil sales before and after the capture of former President Nicolas Maduro.
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The US has completed the first sales of Venezuelan oil under a new $2 billion deal between Caracas and Washington.
A US official confirmed the initial sales were valued at $500 million, with more expected soon.
The Trump administration plans to sell up to 50 million barrels of the country’s stranded oil and continue sales indefinitely.
In December, Asian buyers demanded deep discounts for Venezuelan crude due to a glut of sanctioned oil from Russia and Iran.
Heightened loading risks in Venezuela and quality issues with the oil also pressured prices.
State oil company PDVSA was forced to slash prices, with its discount to Brent crude roughly double year-ago levels.
A trader noted Chinese buyers showed little interest in Venezuela’s Merey heavy crude at $14 per barrel below Brent in December. – Reuters
