Trading Firms Push for Discounted Venezuelan Oil Amidst High Shipping Costs

Global oil trading firms Vitol and Trafigura are pushing for steeper discounts on Venezuelan crude oil as rising freight rates shrink their margins, five sources familiar with the matter said.

The two merchant houses have been among the biggest winners in a race to control Venezuela's crude flows since the US captured then-President Nicolas Maduro in January and began pushing to reactivate the country's oil sector.

They now sell and ship more than half of the OPEC member's exports, and the negotiations for cheaper prices highlight the challenges of operating in Venezuela's volatile energy sector, which until recently was under severe US sanctions.

Sale prices for the nation's flagship Merey heavy crude grade have recovered steadily this year from hefty discounts forced by the sanctions until the end of 2025.

Punishment clauses, such as imposing extra fees to load tankers in countries with security risks, have also disappeared from freight contracts as more traders and buyers entered the market. Large vessel owners have returned as well, helping bring prices closer to market standards.

That recovery is now under threat, as the cost to transport oil on tankers globally has hit record highs in recent weeks following the biggest wave of