Offers of Venezuelan oil limited, most going to US, say Indian refiners

Indian refiners say only small volumes of Venezuelan crude are being offered as most supplies are directed to the United States

Indian oil refiners are only being offered small volumes of Venezuelan crude ‍as most supply is ​heading to the United States, four refining executives said on Tuesday, slowing the return of the South American supply to the world's third-largest importer.

Trading houses Trafigura and Vitol began marketing Venezuelan oil this month after an agreement between Caracas and Washington ​for the US to control 50 million barrels following its capture of Venezuela's Nicolas Maduro on January 3, with proceeds going to a US-supervised fund.

Since then, Indian refiners - Reliance Industries Ltd, Indian Oil Corp Hindustan Petroleum Corp and Mangalore Refinery and Petrochemicals Ltd have been looking to buy Venezuelan crude.

 

"Offers are not there. Traders are looking to meet their commitment to the US market," one executive said, referring to Vitol and Trafigura. The executives declined to be named as they are not authorised to speak to media. Vitol and Trafigura ‌did not immediately respond to requests for ​comment.

Indian refiners have also previously said that discounts on Venezuelan crude are not wide enough to make it attractive for them to purchase.

The trading firms have sold Venezuelan crude ‍to US and European refiners including Valero, Phillips 66, Repsol and Vitol's Saras refinery in Italy.

A Bharat Petroleum ‍Corp executive ‌said it plans ​to tie up with another ‍firm to buy Venezuelan oil as the quantity it needs is ‍small ‍at about ‌200,000 barrels.