Oil major Chevron Corp, global trading houses Vitol and Trafigura, and other firms are competing for US government deals to export crude oil from Venezuela, according to sources familiar with the matter.
Trump has demanded that Venezuela give the US full access to its oil sector just days after it captured Maduro on Saturday. US officials have said Washington will control the country’s oil sales and revenues indefinitely.
The companies are contesting initial deals to market the up to 50 million barrels of oil that state-run oil company PDVSA has accumulated in inventories amid a severe oil embargo that has involved four tanker seizures, two of the sources said.
“The market will focus on the outcome in the coming days for how the Venezuelan oil in storage will be sold and delivered. Oversupply concerns could remain a concern if there is no limitation on sales,” said Teng.
Oil prices surged after several subdued days, partly correcting earlier neglect of geopolitical risks, Haitong Futures said in a report on Friday.
A nationwide internet blackout was reported in Iran on Thursday, internet monitoring group NetBlocks said, as protests in the capital Tehran and the major cities of Mashhad and Isfahan and other areas around the country over economic hardships continued.
Still, global inventories are rising, and oversupply remains the main driver that could cap the gain, Haitong Futures said.
Unless risks around Iran escalate, the rebound is likely limited and hard to sustain, Haitong Futures added.
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