Venezuela’s state-owned oil company, PDVSA, is fundamentally altering its export strategy by cutting out independent traders and selling crude directly to refiners.
The state producer is steadily returning to the commercial model it employed before the imposition of US sanctions in 2019, a move that streamlines the supply chain for sanctioned barrels.
This strategic pivot coincides with a significant volume increase, as Venezuela is now shipping more than 1.2 million barrels per day of crude and fuel.
The direct-to-refiner approach reduces the number of intermediaries in the transaction chain, potentially lowering transaction costs and increasing the opacity of the final destination for the barrels.
The development marks a notable evolution in the market for sanctioned oil.
By bypassing the traditional network of traders who have long facilitated the movement of Venezuelan crude, PDVSA is asserting greater control over its export revenues and logistics.