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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
OIL
China will likely face less competition for Venezuelan crude as India steps away from purchasing barrels in the wake of renewed sanctions, according to Platts.
- However, a rise in Chinese buying would depend on the trade economics for refiners. These buyers currently have plentiful alternatives, sources told Platts.
- As a result, volumes to Asia are unlikely to change significantly.
- India imported around 130k b/d of Venezuelan crude in March. This will need to find new homes, mainly in China.
- China’s Teapots reduced their consumption of Venezuelan crudes by 40% from October-March, as sanctions relief lifted prices.
- Discounts for Venezuelan barrels – currently Brent minus $12-$13/b - are expected to decline further, making them relatively cheaper than other feedstocks such as Iranian Light – Brent minus $4.5-$5.5/b, or ESPO – Brent minus $0.2-$0.3/b
- Venezuelan crudes could fall to discounts of around $20/b, as Chinese refiners were facing heavy losses producing asphalt due to weak demand.
Source: S&P Global Commodity Insights
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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