U.S. oil refiners won’t be allowed to complete shipments of Venezuelan crude they booked before the Trump administration slapped new sanctions on the Latin American nation.
U.S. Treasury Department officials have informed some companies that previously contracted cargoes won’t be exempt from a new rule blocking payments to Venezuela’s PDVSA, according to two people familiar with the matter. The requirement forces purchasers of Venezuelan crude to deposit payment into an account state-owned Petroleos de Venezuela SA can’t touch.
The clarification puts refiners in a difficult position, as PDVSA is now demanding up-front payment before releasing any tankers bound for the United States. But under the Trump administration’s Jan. 28 sanctions, U.S. companies are barred from doing business with PDVSA.
Two vessels contracted for Valero Energy Corp. and one belonging to Chevron Corp. are anchored in Venezuela, awaiting payment. A fourth tanker booked by Chevron may be rerouted without getting the oil it came for, according to tanker tracking data compiled by Bloomberg.