COMPETITIVE · MARKET STRUCTURE · INDIA
Venezuelan crude exports shift to VLCCs; Chevron resumes sales to Reliance
Change
Trading houses have chartered multiple VLCCs for March loading at Venezuela’s Jose terminal—enabling larger export cargoes to India—and Chevron has sold a Venezuelan crude cargo to Reliance for the first time since Dec 2023, per ship data and sources.
Why it matters
VLCCs (up to ~2 million barrels) have been assigned March loading windows at PDVSA’s Jose terminal, a material logistics change from the recent reliance on smaller tankers. Larger liftings can lower per-barrel freight costs, reduce dependence on scarce mid-size tankers, and speed delivery cadence beginning next month, potentially drawing down stored inventories faster. Separately, shipping data and sources indicate Chevron sold a Boscan crude cargo to Reliance—its first such sale since December 2023—adding a confirmed Indian buyer channel for Venezuelan heavy crude. The shift also interacts with pricing pressure cited by traders (discounts vs Brent amid backwardation), tightening the link between freight economics and netbacks for these cargoes.
Implications
- • Lower per-barrel freight costs for Venezuela-to-India crude via VLCC liftings
- • Reduced availability pressure on Panamax/Aframax tonnage used for heavy crude exports
- • Faster export cadence from Jose could draw down Venezuela’s stored crude volumes
- • Confirmed additional Indian offtake channel for Venezuelan heavy crude via Chevron sale
Who is affected
- • Indian refiners buying heavy sour crude (Reliance; IOC; BPCL; HMEL)
- • Trading houses exporting Venezuelan crude (Vitol, Trafigura)
- • PDVSA/Jose terminal export operations and scheduling
- • Tanker owners/operators in VLCC and mid-size crude segments
Source
Topics
Business & Markets Markets Supply Chain & Logistics Energy & Power Oil & Gas