Venezuela sending crude oil to Iran
The Iranian tanker Ndros is in Venezuela busy loading 1.9 million barrels of crude oil that Iran has purchased. It is not clear if Iran intends to sell the oil elsewhere or refine the oil first. The US has forbidden Venezuela from selling oil to Iran but cannot really enforce its ban on Venezuelan oil trade with Iran.
The shipper of the oil is the state-owned PDVSA, (Petroleum Venezuela) the National Oil Company of Venezuela. Ndros is booked by the National Iranian Oil Company.
Iran may think marketing oil will be easier with President BIden
Iran has been talking of increasing production with easier marketing with the new president. Venezuela may be seeking additional sources of crude.
Neither Iran nor Venezuela are commenting directly on the shipment
Iran’s oil ministry would not comment on the shipment. PDVSA also did not immediately reply to a request for comment. Any discussion of the trade might very well anger the Trump administration. After Biden’s inauguration, relations between the two countries could very well improve.
Iran has been supplying goods for Venezuela
Iran has been supplying gasoline and food for Venezuela. Venezuela has paid for the assistance with gold avoiding US-controlled international finance systems. US sanctions have forced closer trade ties between Venezuela and Iran. Until US sanctions are removed it is quite natural that there should be expanding and thriving trade ties between the two countries.
