Reliance May Buy Venezuelan Oil If Rules Permit
A spokesperson for Reliance told Reuters that the company is awaiting clarity on access to Venezuelan oil for buyers outside the United States and would consider purchasing the crude in a fully compliant manner if permitted. The potential move comes after the US began facilitating the marketing of Venezuelan oil in global markets and assumed control over its sale for an indefinite period.
At the same time, global oil majors such as Chevron are reported to be in discussions with the US government to secure licences that would allow them to purchase and sell Venezuelan oil.
In the equity market, shares of Reliance Industries fell 2.25 per cent on Thursday to close at Rs 1,470.30 on the BSE, after touching an intraday low of Rs 1,468.45, down 2.37 per cent. The stock has declined for four consecutive sessions, losing 7.67 per cent over the period.
Over the four trading days, Reliance’s market capitalisation has eroded by about Rs 1.65 trillion to Rs 19.90 trillion.
Earlier this month, the United States Department of Energy said the US is selectively rolling back sanctions to enable the transportation and sale of Venezuelan crude and refined products in global markets. According to the department, these sales will begin immediately and could involve around 30–50 million barrels, continuing on an indefinite basis.
Reuters also reported that Chevron is seeking to expand a key licence to operate in Venezuela, which would allow it to raise crude exports to its own refineries and sell oil to other international buyers. An expanded licence could enable Chevron to return to earlier export levels and allocate Venezuelan crude to destinations outside the US, as it has done in the past.
According to reports, some of Chevron’s former business partners, including an Indian refiner, have approached Venezuelan authorities in Caracas this week to explore the possible resumption of oil loadings.