By Dmitry Zhdannikov, Shariq Khan and Robert Harvey<\/p>\n
LONDON\/NEW YORK, Jan 8 (Reuters) – U.S. President Donald Trump’s administration has invited the bosses of commodity trading houses Vitol and Trafigura to the White House on Friday for talks on marketing Venezuelan oil, \u200bfour sources familiar with the matter told Reuters.<\/p>\n
European trading houses have traditionally dominated global oil trading and could help the U.S. \u200csell oil from Venezuela even though Washington wants U.S. majors to play the biggest role.<\/p>\n
Geneva-headquartered Vitol has already received a preliminary licence from the U.S. government to begin negotiations for \u200cthe import and export of oil from Venezuela for 18 months, four sources told Reuters on Thursday.<\/p>\n
The White House has said it would be hosting U.S. oil majors on Friday, but the invitation to trading houses has not been previously reported.<\/p>\n
Reuters could not immediately obtain a full list of those invited to the meetings.<\/p>\n
Vitol and Trafigura, which was also formerly based in Geneva but is now headquartered in Singapore, declined to comment. The White House did \u2060not comment on whether Vitol and Trafigura were \u200cinvited.<\/p>\n
US INDEFINITE CONTROL OF OIL SALES<\/p>\n
The Trump administration set its sights on Venezuela’s oil industry soon after U.S. forces captured President Nicolas Maduro on January 3. Washington has said it wants to control Venezuela’s oil sales and revenue \u200dindefinitely.<\/p>\n
The U.S. Department of Energy said on Wednesday it was engaging with commodity marketers and banks to execute and to provide financial support for Venezuelan crude oil and fuel sales to the country. It did not specify which companies.<\/p>\n
Trump has already said U.S. companies will invest in Venezuela and rebuild its oil industry to \u200bproduce more oil and bring global energy costs down.<\/p>\n
Washington and Caracas agreed a deal this week to export some 30-50 million barrels of \u200coil worth $2 billion to the United States but U.S. oil majors have said they want “serious guarantees” before they make investments.<\/p>\n
Years of under-investment and sanctions have led Venezuela’s output to fall to around 1 million barrels per day, or just 1% of global supply, from 3.5 million bpd in the 1970s when it accounted for 7% of global oil.<\/p>\n
INVOLVEMENT IN VENEZUELA<\/p>\n
Vitol and Trafigura were among the most active traders of Venezuelan oil prior to U.S. sanctions in 2019.<\/p>\n
In the past, they have marketed Venezuelan oil received from state firm PDVSA\u2019s European partners, which were U.S. licence holders. And their \u2060capacity to have tanker fleets in Venezuela quickly and trade barrels exceeds that \u200bof many joint venture partners. Yet they might not have first access to Venezuela\u2019s crude.<\/p>\n
“U.S. majors \u200bare central to production, but large international trading houses bring global reach and optionality the majors lack. It therefore makes clear sense for these traders to engage proactively with the U.S. government to discuss next steps,” Jean-Francois Lambert of \u200dconsultancy Lambert Commodities said.<\/p>\n
U.S. oil major \u2060Chevron is in talks with the U.S. government to expand a licence to operate in Venezuela so it can sell to other buyers, as well as to increase exports to its own refineries, Reuters reported on Wednesday.<\/p>\n
Under U.S. licences, Chevron, India’s Reliance, Italy’s Eni, \u2060Spain’s Repsol, France’s Maurel & Prom and China’s CNPC have intermittently been the main traders of Venezuelan oil since sanctions were imposed in 2019.<\/p>\n
(Reporting by Shariq Khan in New York, \u200cArathy Somasekhar and Marianna Parraga in Houston, Dmitry Zhdannikov, Robert Harvey and Anna Hirtenstein in London, Julia Payne in Brussels \u200cand Aizhu Chen in Singapore; editing by Barbara Lewis and Jason Neely)<\/p>\n","protected":false},"excerpt":{"rendered":"By Dmitry Zhdannikov, Shariq Khan and Robert Harvey LONDON\/NEW YORK, Jan 8 (Reuters) – U.S. President Donald Trump’s…\n","protected":false},"author":2,"featured_media":14065,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[125],"tags":[2127,658,10156,593,10157,196,194,592,158,2567],"class_list":["post-14064","post","type-post","status-publish","format-standard","has-post-thumbnail","category-vitol","tag-commodity-trading","tag-oil","tag-oil-majors","tag-president-donald-trump","tag-trading-houses","tag-trafigura","tag-venezuela","tag-venezuelan-oil","tag-vitol","tag-white-house"],"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/14064","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=14064"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/14064\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/14065"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=14064"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=14064"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=14064"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}