US Moves to Control Venezuelan Oil After Maduro Ousted... Resumes Supply of Diluents

Naphtha Supply Resumes After 8 Months
Venezuelan Crude Expected to Shift from Russian to US Markets

After the ousting of Venezuelan President Nicolas Maduro, the United States has begun a full-scale effort to take control of the country’s crude oil. The US has resumed the supply of diluents necessary for the production and transportation of heavy crude oil.

On January 10 (local time), major foreign media outlets reported that the United States had resumed its supply of naphtha, a diluent whose exports to Venezuela had been suspended, after eight months.

Naphtha is an essential material in the production of heavy crude oil. It is used as a diluent to facilitate the transportation of heavy crude. The resumption of this supply is interpreted as the first step by the Donald Trump administration to seize control of Venezuela’s oil interests.

According to foreign media, the energy commodity trading company Vitol is scheduled to ship 460,000 barrels of naphtha from Houston this weekend and send it to Venezuela. This shipment is expected to arrive in Venezuela sometime next week.

Previously, in May of last year, when the Trump administration revoked business licenses as a means of pressuring Venezuela, US and European energy companies halted their naphtha exports. As a result, Venezuela has since relied on Russian naphtha.

In addition, since last month, the Trump administration has seized oil tankers operating in waters near Venezuela, effectively blockading the Caribbean Sea. In response, Venezuelan oil companies have reduced crude shipments. In recent days, storage tanks on land have reached capacity, forcing a reduction in crude oil production itself.

Foreign media also reported that commodity trading companies, including Vitol, and oil companies such as Chevron, are working to secure naphtha in anticipation of increased Venezuelan crude production. As US naphtha supplies increase, Venezuela is expected to naturally reduce its imports of Russian naphtha.

Earlier, on the 6th, President Trump announced that after Maduro’s arrest and extradition to the United States, the interim Venezuelan government would deliver up to 50 million barrels of Venezuelan crude oil to the United States. This volume is equivalent to Venezuela’s typical production over about 50 days. He also stated that the proceeds from oil sales would be used to benefit both Venezuelan and American citizens.

US President Donald Trump is monitoring the progress of the "Resolute Determination" operation to arrest Venezuelan President Nicolas Maduro with his aides on the 3rd (local time). Trump Truth Social account Photo by Yonhap News