Yahoo Finance
Commodity traders are having the rug pulled out from under one of their biggest paydays yet as refiners startbypassing oil and tradersand buying Venezuelan crude directly, according to Reuters.
Refiners and major oil-producing firms are rapidly gaining market share in Venezuelan crude by locking in direct supply contracts with state-runPetróleos de Venezuela, S.A.
(PDVSA), bypassing the global middlemen and commodity trading houses such as Trafigura and Vitol that previously dominated the space.
Six months after traders reopened Venezuela's oil market,Phillips 66(NYSE:PSX) and India'sReliance Industrieshave already signed direct supply agreements, withValero(NYSE:VLO) and Thailand'sTipcoexpected to follow.
Previously, Vitol and Trafigura enjoyed first-mover advantage, managing tobecome dominantin Venezuelan crude marketing because of their exclusive U.S.
government licenses, pre-existing logistical infrastructure and historical ties to PDVSA.
Following major political shifts in Venezuela in January, the U.S.
administration brokered a deal to manage and sell the country's oil.
Department of the Treasury issued special, long-term licenses specifically to Vitol and Trafigura until June 2027, effectively giving the traders a temporary monopoly.
The pair collectively moved more than 100 million barrels of crude over a six-month period while other global firms remained legally locked out.
Their unmatched logistics also gave them a clear upper hand.
After all, global trading houses have the fleet capacity and global reach to quickly deploy tankers and reroute large volumes of crude.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
Comments
Post a Comment