Source: Reuters (via feed)
Phillips 66 and Citgo Petroleum are planning to buy heavy crude oil directly from Venezuela beginning in April. The companies aim to increase their profits by bypassing trading houses. This approach could change how they acquire Venezuelan crude.
Currently, Phillips 66 and Citgo purchase oil through intermediaries. However, direct buying may reduce costs and improve supply chain efficiency. The move comes amid ongoing oil market fluctuations.
Although details on contract terms are not available, the reported intent shows a shift in procurement strategy. Both companies operate large refining capacities that use heavy crude. Therefore, securing direct supplies could influence their refining operations.
This development may affect trading houses that usually broker Venezuelan crude deals. However, the broader implications for Venezuela’s oil exports or the industry remain unclear. Neither company has provided additional comments on this report.
Direct crude purchases can reduce costs for refiners and impact trading intermediaries in the oil supply chain.
