Vitol’s New License: Implications for Venezuelan Oil Market

Vitol’s License and Future Operations

By Arathy Somasekhar, Dmitry Zhdannikov and Shariq Khan

Details of the Preliminary License

HOUSTON, Jan 8 (Reuters) – Vitol, one of the world’s largest commodity traders, has received a preliminary special license from the U.S. government to begin negotiations to import and export oil from Venezuela for 18 months, four sources said on Thursday.

Impact of U.S. Policy on Venezuela

Vitol would seek to finalize the license and terms under which it can operate in the South American country in the coming days, one source said. Vitol declined to comment.

Market Reactions and Expectations

President Donald Trump’s administration has said it wants to control Venezuela’s oil sales and revenue indefinitely, after U.S. forces captured President Nicolas Maduro on January 3. Vitol and rival Trafigura are in talks with the Trump administration about the marketing of Venezuelan oil, Reuters reported earlier.

(Reporting by Arathy Somasekhar in Houston, Shariq Khan in New York, and Dmitry Zhdannikov and Julia Payne in Brussels; Editing by David Gregorio)