Venezuela is forced to increase oil discounts after the arrest of the US tanker
Buyers of Venezuelan oil have stepped up pressure on state-owned PDVSA, demanding higher discounts and changes to spot contract terms after the US seized the country's oil tanker for the first time. This is reported by traders and industry sources. It is written by The Public with reference to Reuters.
Last week, the US Coast Guard intercepted the Skipper off the coast of Venezuela. At the same time, Washington imposed sanctions on six tankers and related companies. This has sharply increased the risks for buyers and shipowners.
Discounts on Merey's flagship heavy crude for China have risen to $21 per barrel below Brent. A week ago, they were $14 to $15. A significant part of the rise in price is due to the so-called war surcharge, which shipowners put in place because of the risk of interceptions and delays in the Caribbean.
PDVSA is already facing competition from Russian and Iranian oil, which is also sold to China at discounts. The buyers are asking for a relaxation of the digital currency prepayment requirements and compensation for vessel downtime. The company does not rule out a wave of cargo refusals if conditions do not change.
This year, China has received 55 to 90 per cent of Venezuela's monthly oil exports. In November, the country exported 952,000 barrels per day, of which 778,000 went to China. Currently, more than 11 million barrels remain blocked on tankers off the coast of Venezuela.
An additional difficulty was created by a cyberattack that temporarily shut down PDVSA's administrative systems and led to a pause in supplies. Against this backdrop, Chevron remains the only company exporting oil from Venezuela without delays.
