The removal of American sanctions against Venezuela has led Chinese companies, which previously bought oil from Caracas at large discounts, to now extend their purchasing periods due to the wide price range. This was reported by Reuters.
Discounts on Venezuelan oil for deliveries in the first quarter of 2024 currently range from $9 to $19 per barrel, according to the agency. Sources added that while Venezuela was still under sanctions, domestic crude oil was trading around $20 per barrel below ICE Brent (DES) for October delivery in China. Offers from global traders and energy companies such as Vitol, Gunvor and Trafigura are forcing positions to be adjusted.
China has purchased heavy Venezuelan oil for asphalt production, but given the end of the road construction season, this has become an additional incentive for buyers from China to suspend bulk purchases of oil products.
Meanwhile, China’s cut oil bitumen imports fell in October to their lowest level since May. Stocks are approaching their peak of 1.54 million tonnes. The publication states that demand is expected to increase again by March, when asphalt concrete plants start operating again.
Former industry expert appreciated The West is trying to strengthen sanctions against Russian oil.
Previously published by Bloomberg registeredHe said that the postponement of the OPEC+ meeting would negatively affect oil prices.