Refineries are expanding their participation in the Venezuelan oil market through direct contracts with PDVSA, a strategy that reduces the space occupied by Vitol and Trafigura.
Refining companies and some joint venture partners are recovering commercial relationships that were limited after energy sanctions imposed by the United States in 2019.
PDVSA Resumes Direct Sales of Venezuelan Crude
First, PDVSA is returning to a marketing model based on contracts with refineries and operating partners. This system allows placement of heavy crude cargoes through more stable agreements.
The Venezuelan state company seeks to diversify buyers, destinations, and sales conditions. By reducing intermediary participation, it can also negotiate more favorable prices and secure constant demand for grades such as Merey 16.
Vitol and Trafigura maintain an important position in Venezuelan exports. Both companies acquired more than 100 million barrels during six months after signing agreements with Caracas.
However, the growth of direct purchases is modifying the market distribution.
Phillips 66 and Reliance Buy Directly from PDVSA
On the other hand, Phillips 66 resumed its purchases of Venezuelan oil in May after a seven-year pause. In July, the refinery received the allocation of three Merey 16 cargoes for loading at the José terminal.
This heavy crude with high sulfur content can be processed by complex refineries located on the U.S. Gulf Coast.
Reliance Industries also began buying directly from PDVSA in May. The Indian company combines those barrels with cargoes from Chevron, Vitol, and Trafigura to meet its processing needs.
Likewise, Valero Energy and Tipco Asphalt could join this purchasing model during the coming months. As of mid-July they had not yet received loading windows.
Chevron Increases Its Venezuelan Oil Exports
Meanwhile, Chevron increased its Venezuelan crude exports to approximately 293,000 barrels per day during the second quarter. In the previous three months it had shipped about 223,000 barrels per day.
The increase reflects the expansion of production and shipments from its joint ventures in Venezuela.
Chevron allocates part of those volumes to its own refineries and also supplies other facilities in the United States.
The growth of exports from PDVSA’s partners adds competition for available barrels. It also reduces the volume that can remain in the hands of trading houses.
Repsol and Eni Expand Loadings to Europe
In Europe, Repsol began loading Merey 16 directly at the José terminal during July. In previous months it had obtained that crude through intermediaries.
Eni also received the allocation of a cargo destined for the European market.
The supplies allow compensation of part of PDVSA’s outstanding debts with both companies. Repsol and Eni also participate in oil and gas projects within the country.
This commercial relationship can drive new shipments to Europe as production from their joint operations increases.
Vitol and Trafigura Maintain Logistical Capacity
Despite the new competition, Vitol and Trafigura retain relevant advantages. Both companies have international networks for transportation, storage, and marketing.
That infrastructure allows them to mobilize large cargoes, split volumes, and redirect oil to markets in Asia, Europe, or the Americas.
Trafigura already has operational personnel in Caracas. Vitol is also preparing to hire a local team to expand its activities.
Therefore, the market does not point to the disappearance of traders. The main change is a broader distribution of cargoes among intermediaries, refineries, and PDVSA partners.
Venezuela Exceeds 1.2 Million Barrels Per Day Exported
Currently, Venezuela exports more than 1.2 million barrels per day of oil and fuels. The volume exceeds the average of 847,000 barrels per day recorded in 2025.
The country expects to increase its production from approximately 1.2 million to 1.37 million barrels per day by year-end.
Greater supply could generate space for new contracts and buyers. It would also allow PDVSA to negotiate longer-term supply agreements.
However, growth depends on the operational capacity of the fields, equipment availability, and access to oil services.
As production advances, competition for Venezuelan oil will continue to increase. Refineries will seek to secure direct supplies and traders will attempt to preserve their role within international flows.
Source: Reuters
Photo: Shutterstock
