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Refiners increasingly buy Venezuelan crude directly, cutting out traders

Direct supply deals have let PDVSA’s crude move around the market, with Phillips 66 and Reliance Industries already signing agreements, and Vitol and Trafigura previously moving more than 100 million barrels in six months under licenses that end in June 2027.

Reported · Written up by our desk · Energy

Refiners and major producers are moving to buy Venezuelan crude directly from PDVSA, bypassing commodity traders that previously dominated marketing, Reuters reported via OilPrice. The shift reflects a faster transfer of market share from trading houses to buyers that secure direct supply contracts.

OilPrice said Phillips 66 and Reliance Industries have already signed direct Venezuelan crude supply agreements, with Valero and Thailand’s Tipco expected to follow. The outlets note this comes after the reopening of Venezuela’s oil market.

According to the report, Vitol and Trafigura had earlier held a first mover advantage, supported by U.S. government licenses, logistics infrastructure, and ties to PDVSA. The U.S. Department of the Treasury issued special long-term licenses to those firms until June 2027, and Vitol and Trafigura collectively moved more than 100 million barrels of crude over a six-month period.

The article also links the market change to political shifts in Venezuela in January and a U.S. administration brokered deal to manage and sell the country’s oil. As direct contracts expand, the report says refiners are increasingly cutting the middlemen out of Venezuelan crude sourcing.

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