Global commodities trading giants Vitol and Trafigura have initiated discussions with major oil refiners in India and China to sell cargoes of Venezuelan crude oil scheduled for delivery in March, according to multiple trade sources. This development follows the recent agreements both firms secured with the U.S. government to help market Venezuelan oil that had been stranded due to sanctions.
Marketing Push for Stranded Crude
The trading houses confirmed their U.S. agreements on Friday, January 9, 2026. This came shortly after Venezuela's interim government consented to export up to 50 million barrels of crude oil to the United States. Their concerted marketing efforts are set to accelerate sales under the new U.S.-backed program, enabling the OPEC member nation to resume significant oil exports. These exports had been largely frozen since the ouster of President Nicolas Maduro.
Both companies are now moving rapidly to secure shipping and finalize sales. Trafigura's Chief Executive Officer has indicated that the firm plans to load its first cargo destined for the U.S. this week. In a related logistical move, shipping data from Kpler showed that Vitol loaded the first cargo of naphtha from the U.S. to Venezuela onto the Hellespont Protector on Sunday. This vessel, a Panamax-sized tanker, is expected to arrive at Venezuela's Port of Jose on January 28. Naphtha is a crucial diluent used to thin Venezuela's heavy crude, making it easier to transport and process.
Targeting Major Asian Buyers
In India, Vitol has approached state-owned refiners to offer the Venezuelan crude. One source revealed that the trader offered a cargo at a discount of $8 to $8.50 per barrel against the ICE Brent benchmark on a delivered basis. Last week, sources indicated that refiners like Indian Oil Corp (IOC) and Hindustan Petroleum Corp (HPCL) would consider purchasing Venezuelan oil. Private giant Reliance Industries has also stated it would evaluate resuming purchases if sales to non-U.S. buyers are permitted under the current U.S. regulations.
Simultaneously, both Vitol and Trafigura have reached out to PetroChina, the Chinese state refiner. Before U.S. sanctions were imposed, PetroChina was a major buyer of Venezuela's heavy sour Merey crude and fuel oil. Three sources familiar with the matter confirmed this outreach. One source suggested that the traders might initially focus on large state-owned oil traders in China rather than the smaller independent refiners, often called "teapots," which are known for buying cheaper, sanctioned oil.
Implications for Global Oil Markets
The potential resurgence of Venezuelan oil into the global market is already having an impact. The news of its imminent return has helped offset concerns about potential supply disruptions from Iran, thereby putting a cap on gains in global oil futures prices. The cargoes being offered are for delivery in the second half of March.
When contacted for comment, Vitol declined to elaborate. Trafigura acknowledged it is providing logistical and marketing services to facilitate the sale of Venezuelan oil but did not comment on specific discussions with refiners. PetroChina, Indian Oil Corp, and Hindustan Petroleum did not immediately respond to requests for comment.
This strategic move by Vitol and Trafigura marks a significant step in reintegrating Venezuelan crude into international energy flows, with Asian refining powerhouses like India and China poised to be key destinations.
