The Daily Journal.- Major international oil trading companies Vitol and Trafigura are pushing for steeper discounts on Venezuelan crude oil as rising freight rates erode both companies’ profit margins.
According to sources consulted by Reuters, the companies are seeking more favorable prices per barrel after maritime transportation costs surged in recent weeks. Higher shipping costs have reduced the profitability of buying and reselling Venezuelan crude.
As a result, both companies have offered prices between $18 and $20 per barrel below the Brent crude benchmark for shipments bound for the United States or Europe.
Geopolitical and logistical factors have driven higher freight rates. Uncertainty surrounding maritime routes and rising insurance costs have made transporting crude oil from Venezuelan ports more expensive.
With information from Reuters.
