Reliance Industries said it will consider buying Venezuelan oil, as per a Reuters report. According to the report, the Indian petroleum major will consider buying Venezuelan oil if permitted to sell it to non-US buyers.
“We await clarity on access for Venezuelan oil by non-US buyers and will consider buying the oil in a compliant manner,” a Reliance Spokesperson told Reuters.
Financialexpress.com could not however, independently confirm the news.
The development comes after the United States began marketing Venezuela’s oil in the global market and controls the sale of Venezuelan oil for an ‘indefinite period’. At the same time, global oil majors such as Chevron are in talks with the US government for a licence for Venezuelan oil sale and purchase.
Reliance share price movement
On Thursday, the Reliance Industries stock lost 2.25 per cent to settle at Rs 1,470.30 on the BSE. During the day, it dropped 2.37 per cent to Rs 1,468.45.
Shares of Reliance Industries have been in a downtrend for the past four trading sessions, declining 7.67 per cent. The company’s market valuation has eroded by Rs 1,65,299.15 crore to Rs 19,89,679.45 crore in four days.
How will Venezuelan oil be sold in the international market?
On January 6, the United States’ Energy Department stated that the US is selectively rolling back sanctions to enable the transportation and sale of Venezuelan crude and oil products to global markets.
The Energy Department stated that these oil sales will commence immediately, with the anticipated sale of approximately 30–50 million barrels. And will continue indefinitely.
Global oil majors eye Venezuelan oil
According to a Reuters report, Oil producer Chevron is in talks with the US government to expand a key license to operate in Venezuela so it can increase crude exports to its own refineries and sell to other buyers.
The reports stated that the license expansion would enable Chevron to return to its previous export levels, while providing Venezuelan crude to business partners who could allocate the cargoes to destinations other than the U.S., as the company had done in the past.
According to reports, some of Chevron’s former business partners, including an Indian refiner, inquired this week in Caracas about the possible resumption of oil loadings in Venezuela.