Source: Bloomberg
Tankers have begun discharging Venezuelan crude oil at Caribbean islands, publicly signaling their activity in a move that marks a new trade order after the US exerted control over Caracas’ oil industry. Two vessels delivered about 2.5 million barrels of Merey oil over the weekend to storage tanks on Saint Lucia and Curacao, serving as staging posts for broader exports.
The shipping market is being shaken up by the intervention, with freight rates surging for some routes as tankers — including those previously part of the “dark fleet” — turn on their transponders to offload oil.
The Kelly (VLCC): Arrived at Castries, Saint Lucia, on January 18 to offload 1.9 million barrels of Merey. This marks the first shipment of Venezuelan crude to the island since Dec. 2018.
The Volans (Aframax): Unloaded about 600 000 barrels at Curacao on January 17 at the Bullen Bay storage facility. The vessel was carrying a cargo for Vitol.
The Marbella (VLCC): Reached South Riding Point in the Bahamas on January 19 with about 1.9 million barrels (Vitol cargo).
The Trump administration has tapped trading giants Trafigura Group and Vitol Group to help market Venezuelan barrels and is encouraging US majors to invest in the country to revive its battered industry.
Buckeye Partners LP operates the storage facility in Saint Lucia. The company stated it is leveraging its operational expertise and strategically positioned infrastructure to help bring Venezuelan crude to market safely, responsibly, and in accordance with all applicable laws. Prior to Washington’s intervention, most flows headed to China via dark-fleet tankers. Now, cargoes are being offered to a wider range of destinations, including Indian and US Gulf Coast refiners.
