Key Points
- The first direct shipment of Venezuelan oil to the U.S. under a new deal is on its way.
- The tanker is carrying 1 million barrels of crude and is headed to Louisiana.
- The shipment is part of a 50-million-barrel supply deal between Washington and Caracas.
- Venezuela needs to drain its massive oil storage before it can increase production.
The first direct shipment of Venezuelan oil to the United States under a new landmark deal is now underway. A crude tanker chartered by the trading firm Trafigura left Venezuela’s Jose port on Sunday, heading for the Louisiana Offshore Oil Port (LOOP). The ship is carrying about 1 million barrels of Venezuelan heavy crude.
This is a major milestone in a 50-million-barrel supply deal that was agreed upon earlier this month between the U.S. and Venezuela.
The agreement is part of a broader plan by the Trump administration to get Venezuela’s massive oil reserves flowing again and to bring American companies back into the country’s energy sector.
So far, the trading houses Vitol and Trafigura, which received the first U.S. licenses to export Venezuelan oil, have been shipping the crude to Caribbean storage terminals. From there, they have been selling it to refiners worldwide. This new, direct shipment to the U.S. is a sign that the deal is moving into its next phase.
The traders have already shipped between 10 and 11 million barrels of Venezuelan oil under the agreement. They are also preparing to start exporting fuel oil soon.
Before Venezuela can ramp up production, it needs to clear the more than 40 million barrels of oil that have accumulated in its storage facilities during the U.S. blockade. This first direct shipment to the U.S. is a crucial step in that process.
