Venezuelan and US officials are discussing the export of Venezuelan crude oil to refiners in the United States, according to Reuters.
The talks come as Venezuela holds millions of barrels of oil loaded on tankers and stored in terminals that it has been unable to ship since US President Donald Trump imposed a blockade on exports in mid-December.
The measure was part of escalating US pressure on the government of Venezuelan President Nicolas Maduro, which culminated in his abduction by US forces over the weekend.
A deal allowing the stranded crude to be sold to US refiners would redirect shipments away from China, which has been Venezuela’s largest oil buyer over the past decade, particularly after Washington imposed sanctions in 2020 on companies involved in trading Venezuelan oil.
State oil company PDVSA has already cut production because storage capacity is running low due to the export blockade, one source said.
Without a near-term solution, further production cuts may be required.
US refineries along the Gulf Coast are capable of processing Venezuela’s heavy crude grades and were importing about 500,000 barrels per day before Washington first imposed energy sanctions on Venezuela.
It was not immediately clear how PDVSA would receive proceeds from any oil sales while remaining under US sanctions.
The White House, Venezuelan government officials and PDVSA did not immediately comment on the reported talks.
