US Claims 30% Markup on Venezuelan Oil
US Energy Secretary Chris Wright claimed Washington can now “squeeze” more value out of Venezuelan barrels. In a statement Thursday, Wright said the price the US is realizing is about 30% higher when selling the same barrel of Venezuelan oil than the price Venezuela received just weeks earlier—a sign that marketing controls and access to premium buyers are changing the discount landscape for Caracas oil.
The statement came after the US completed the first sale of Venezuelan oil under a US$2 billion deal, with the initial transaction reportedly worth US$500 million and further sales projected to follow in the coming days and weeks. The Trump administration also stated that it would market up to 50 million barrels of Venezuelan oil that had previously been “trapped,” and sales could continue as production increases.
Previously, PDVSA had to slash prices to attract buyers—particularly in Asia—due to a combination of quality issues, sanctions, and competition from discounted barrels from Russia and Iran. During that period, Venezuela’s flagship (heavy) oil was even offered at discounts of up to US$14 below Brent, reflecting the significant risk premium buyers were demanding.
Now, the market is beginning to detect the price shift. For delivery to the US Gulf Coast, Merey-16 is reportedly being offered at a much narrower discount, around US$6 below Brent—while other heavy crude benchmarks, such as Western Canadian Select in Houston, are still trading at a discount of around US$12.5 to Brent during the same period. This difference underscores the sudden "more competitive" position of Venezuelan heavy crude as its sales and distribution channels change.
Source: Newsmaker.id
