Traders push for discounts for Venezuelan oil as shipping costs soar, sources say

• Aframax tanker charter costs from Venezuela's Jose port to the U.S. Gulf Coast have surged to approximately $3.5 million ($5 per barrel) from $1.35 million ($1.90 per barrel) at the start of 2026
• Vitol and Trafigura are bidding $18-$20 per barrel below Brent, up from the $12-$13 discounts PDVSA recently agreed with joint venture partners, citing need to cover rising freight expenses
• Venezuela's oil exports held steady at 1.17 million barrels per day in August, with tanker waiting times at the highest level since January, potentially hindering U.S. plans to boost the country's exports

Summary: Venezuelan Oil Traders Seek Steeper Discounts as Shipping Costs Surge

Global oil trading giants Vitol and Trafigura are demanding deeper discounts on Venezuelan crude as soaring freight costs squeeze profit margins. The firms, which control over half of Venezuela's oil exports, are bidding $18-$20 per barrel below Brent for Merey crude—significantly wider than current discounts of $12-$13.

Key Figures:

• Aframax tanker charter costs from Venezuela's Jose port to US Gulf Coast have surged to $3.5 million ($5/barrel), up from $1.35 million ($1.90/barrel) at year-start
• Venezuela's Merey crude formula price reached $76.82/barrel in August, up from $67.36 in July, about $14 below Brent
• August oil exports held steady at 1.17 million barrels per day
• Vitol and Trafigura managed approximately 597,000 bpd in exports

Market Context:

The discount pressure follows US sanctions relief after the January capture of former President Maduro, which opened Venezuela's oil sector to international traders. However, recent global shipping attacks related to the US-Iran conflict have driven freight rates higher, threatening the market recovery that had normalized Venezuelan crude prices throughout the year.

Implications:

Rising transportation costs are creating friction between state oil company PDVSA and major trading houses. PDVSA has attempted to bypass intermediaries by selling directly to refineries to improve cash flow, but persistent terminal congestion and record tanker waiting times present obstacles to US plans for rapidly increasing Venezuelan oil exports. The widening discount demands could pressure PDVSA's revenues and complicate the country's oil sector recovery efforts.