Commodities trading giant Vitol has started shipping naphtha to Venezuela, a key component for oil exports from the country. They chartered a tanker to load 460,000 barrels’ worth of naphtha from the US Gulf Coast. Naphtha is crucial due to Venezuela’s heavy crude oil, which requires dilution for transport. The Trump administration is urging US oil companies to invest in Venezuela’s oil industry, which holds the world’s largest proved reserves but faces transportation and refining challenges. Vitol and Trafigura are the first winners in Venezuela’s oil industry, quickly making deals with the Trump administration to move products in and out of the country. Vitol’s shipment of naphtha is a significant move under the new management of Venezuela’s oil industry. Naphtha, a byproduct of oil drilling, could provide an additional revenue stream for US oil companies reentering Venezuela. Russia was the largest supplier of naphtha to Venezuela before the US blockade of sanctioned oil vessels in December.

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