USD 78.9437

+0.3

EUR 89.1511

+0.22

BRENT 88.13

+0.17

AI-92 47.54

+0.01

AI-95 51.96

+0.01

AI-98 59.93

+0.01

Diesel 55.54

+0.02

616

Lukoil halts oil swaps in Venezuela after U.S. sanctions

Litasco stopped its oil swaps deals with Venezuela immediately after the U.S. imposed sanctions on Venezuela’s oil industry and state oil firm PDVSA, Vagit Alekperov said at an investment forum.

Lukoil halts oil swaps in Venezuela after U.S. sanctions


Litasco, the international trading arm of Russia’s 2nd-biggest oil producer Lukoil, stopped its oil swaps deals with Venezuela immediately after the U.S. imposed sanctions on Venezuela’s oil industry and state oil firm PDVSA, Lukoil’s CEO Vagit Alekperov said at an investment forum in Russia.

 

Russia, which stands by Nicolas Maduro in the ongoing Venezuelan political crisis, has vowed to defend its interests in Venezuela - including oil interests - within the international law using «all mechanisms available to us».

 

Because of Moscow’s support for Maduro, the international community and market analysts are closely watching the relationship of Russian oil companies with Venezuela.  

 

«Litasco does not work with Venezuela. Before the restrictions were imposed, Litasco had operations to deliver oil products and to sell oil. There were swap operations. Today there are none, since the sanctions were imposed», Vagit Alekperov said at the Russian Investment Forum in the Black Sea resort of Sochi.

 

Another Russian oil producer, Gazprom Neft, however, does not see major risks for its oil business in Venezuela, the company’s CEO Alexander Dyukov said at the same event.

Gazprom Neft has not supplied and does not supply oil products to Venezuela needed to dilute the thick heavy Venezuelan oil, Dyukov said, noting that the Latin American country hadn’t approached Gazprom Neft for possible supply of oil products for diluents.  

 

Under the new wide-ranging U.S. sanctions, Venezuela will not be able to import U.S. naphtha which it has typically used to dilute its heavy crude grades. Analysts expect that a shortage of diluents could accelerate beginning this month the already steadily declining Venezuelan oil production and exports.

 

Venezuela’s crude oil production plunged by another 59,000 bpd from December 2018 to stand at just 1.106 million bpd in January 2019, OPEC’s secondary sources figures showed in the cartel’s closely watched Monthly Oil Market Report (MOMR) last week.

 

Author: Tsvetana Paraskova

Source : Neftegaz.RU


Follow us on Google News
Advertising at neftegaz.ru

Subscribe to our newsletter

of the best materials Neftegaz.RU

* Incorrect E-Mail Address

By clicking the "Subscribe" button I accept the "Agreement on the processing of personal data"


Advertising at neftegaz.ru