Sanctions-hit Venezuela offers big discounts as oil prices collapse -traders
March 10 (Reuters) - Venezuela's oil company PDVSA is this week offering discounts of up to $23 per barrel on its flagship crude, traders said, as a collapse in global oil prices puts more pressure on the state-run firm, already reeling from tightening U.S. sanctions.
Petroleos de Venezuela had already been pricing its Merey heavy oil this year at $16 to $18 below Brent crude , the sources said, to entice buyers wary of drawing scrutiny from the United States, which since 2019 has sanctioned PDVSA to try to oust socialist President Nicolas Maduro, who it calls a dictator.
With Brent prices suffering their worst rout in 30 years on Monday because of falling demand due to the coronavirus and a price war for market share between major producers Russia and Saudi Arabia, low sell prices could leave PDVSA struggling to cover its costs of production. At a Brent price of around $37 a barrel, discounts put the PDVSA heavy at a scant $14-18.
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