Oil from sanctioned Venezuela will help Europe replace Russian crude as early as next month: report

Venezuela is expected to start shipping oil to Europe as early as next month, sources told Reuters, as the continent continues to cut Russian power.

Five people familiar with the matter told Reuters that Italian oil company Eni and Spain’s Repsol could start importing Venezuelan crude as early as next month, resuming supplies cut off after the United States imposed sanctions in 2019.

The sources said the oil supply would likely be low and not affect global oil prices, which are hovering near 14-year highs.

Sources told Reuters it was hoped the easing of restrictions would encourage Venezuelan President Nicolas Maduro to resume talks with the Venezuelan opposition following an attempted coup.

Other companies, including Chevron, India’s Oil and Natural Gas Corp and France’s Maurel & Prom, had also lobbied the US government to agree to debt-for-oil swaps, but they had no not yet successful.

In an interview with Europe1 on Sunday, French Finance Minister Bruno Le Maire said Paris was discussing with the United Arab Emirates replacing some Russian oil and diesel.

Meanwhile, the US is also expected to allow more oil to flow from Iran, another sanctioned country, Vitol’s Mike Muller says a podcast produced by Gulf Intelligence on Sunday.

Eni and Repsol did not immediately respond to a request for comment.

Mary I. Bruner