On Saturday, Trump said he would impose additional sanctions against Iran in a bid to prevent the country obtaining nuclear weapons.World Politicsread more
Tensions between the U.S. and Iran will likely escalate in the near future, a former adviser to the Iranian government said on Monday.Energyread more
Chinese vice commerce minister said Monday that Beijing would like the U.S. to cancel "inappropriate" actions against Chinese companies.China Economyread more
Eldorado Resorts has agreed to merge with Caesars Entertainment in a cash and stock deal that values its peer at about $18 billion including debt, people familiar with the...Casinos and Gamingread more
A decisive win for Turkey's main opposition party in a re-run of a mayoral election in Istanbul this weekend has prompted hopes for economic and political change.Europe Politicsread more
Sixteen Asia Pacific countries have been negotiating the Regional Comprehensive Economic Partnership since 2013, with India's reluctance to open up its markets a major...Asia Economyread more
The secretary of State said he was traveling to Saudi Arabia and the United Arab Emirates to make sure that the U.S. is "strategically aligned" with its allies.Politicsread more
Experts say Facebook's cryptocurrency project Libra has been a catalyst for the price of bitcoin going higher.Technologyread more
Goldman Sachs helped state firm 1MDB to raise $6.5 billion in 2012 and 2013, and collected higher-than-typical fees of $600 million for the deals.Financeread more
Ekrem Imamoglu of the Republican People's Party beat President Tayyip Erdogan's handpicked candidate by almost 800,000 votes.World Politicsread more
Value investing has become increasingly irrelevant thanks to central banks and technology, according to AB Bernstein.Investingread more
(Corrects headline and first two paragraphs to specify Venezuela turns to India, not Asia, for oil exports. Also corrects paragraphs 5 stating Venezuelan oil is heading to India, China, Singapore, Malaysia and Japan, to clarify that the final destination of these shipments is not yet clear.)
HOUSTON/MEXICO CITY/MOSCOW, Feb 12 (Reuters) - Venezuela's oil exports have tapered off and shifted toward India since new U.S. sanctions began Jan. 28 as state-run oil company PDVSA seeks to replace deliveries to the United States and Europe that were disrupted by payment restrictions.
The South American nation is turning its focus to cash-paying buyers, especially in India, its second-largest customer after the United States, amid U.S. sanctions designed to undercut financial support for Venezuelan President Nicolas Maduro. Sanctions are designed to bar Maduro's access to oil revenue that has helped his government remain in power.
In the two weeks since the sanctions were announced, PDVSA has been able to load and export 1.15 million barrels per day (bpd) of crude and refined products, according to Refinitiv Eikon data. Venezuela was exporting about 1.4 million bpd in the months before sanctions, according to the Eikon data.
Two supertankers, Baghdad and Folegandros I, launched late on Monday from Venezuela's Jose terminal carrying cargoes to Indian ports.
Ship tracking data in Refinitiv showed several other tankers carrying Venezuelan crude or fuel towards Asia, although the final destinations of these vessels were not yet clear.
DOUBLING INDIA SALES
Before the sanctions, PDVSA shipped over 500,000 bpd to the United States, its largest cash market, followed by India then China, at above and below 300,000 bpd respectively. 1/8GRAPHIC: Top importers of Venezuelan crude: https://tmsnrt.rs/2RYGk2E 3/8
Venezuela has sent its oil minister, Manuel Quevedo, to India to convince refiners, including Reliance Industries Ltd and Nayara Energy Ltd, to double their oil purchases.
"We are selling more than 300,000" bpd to Indian buyers, Quevedo said on Monday in New Delhi. "We want to double that amount."
Reliance is among PDVSA's main cash-paying customers, while Nayara receives Venezuelan oil from one of its largest stakeholders, Russian oil-giant Rosneft. The latter supplies PDVSA oil to Vadinar, India's second largest refinery, under a Rosneft payment for loan program that dates to 2014.
Rosneft should be able to continue to receive PDVSA cargoes under its oil-for-loans, according to a reading of U.S. sanctions by lawyers and traders. Nayara receives around half of Venezuelan crude supplied to Rosneft, with the remainder shipped to Europe, including Rosneft operations in Germany.
According to a trading source close both to Rosneft and PDVSA crude operations, the last cargo containing fuel oil for the Russian company left Venezuela for Asia on Jan. 30-31, containing around 1 million barrels.
"PDVSA supplies to Rosneft or its subsidiaries in India under deals clinched before the sanctions are not falling under the sanctions," said Natalia Abtseshko, head of international projects group at Moscow law firm Vegas Lex.
CASH STILL LACKING
Indian refineries could absorb a large portion of those barrels, but it is still unclear how cash sales would be effected without using the U.S. or European bank systems after April 28, the deadline set by the U.S. Treasury.
Venezuela also is open to barter arrangements with India using oil as payment, its oil minister said, though Quevedo did not explain how such a system would work.
Quevedo's willingness to barter goods for oil suggests the turn may not soon resolve the country's need for cash-paying customers to replace U.S. buyers.
About 9 million barrels were stuck last week in tankers waiting for payment or discharge instructions, according to Eikon data. Most are anchored in the U.S. Gulf Coast as Venezuelan opposition leader and self-proclaimed president Juan Guaido moves to set up escrow accounts to receive proceeds.
(Reporting by Collin Eaton in Houston, Marianna Parraga in Mexico City, Olga Yagova in Moscow; additional reporting by Nidhi Verma in New Delhi and Gleb Gorodyankin in Moscow; editing by Gary McWilliams and Marguerita Choy)