U.S. refiner Citgo Petroleum has purchased Venezuelan crude oil for the first time since 2019, following the severance of ties with parent company Petroleos de Venezuela. Citgo, expected to be taken over by an affiliate of Elliott Investment Management, has the capacity to process Venezuela’s heavy sour oil.

Citgo’s recent purchase of 500,000 barrels of Venezuelan heavy crude from Trafigura marks a significant milestone in U.S. efforts to normalize and potentially boost Venezuelan oil sales. This deal is crucial for Citgo, which has struggled to fill the void left by the absence of Venezuelan barrels due to U.S. sanctions.

Citgo, previously a major buyer of Venezuelan crude, has been unable to access Venezuelan oil since 2019. Despite sanctions being partially lifted in recent years, Citgo was not granted access, allowing other U.S. refiners like Chevron to import cargoes.

U.S. government officials fast-tracked supply deals with trading houses like Vitol and Trafigura to help clear a massive accumulation of oil inventories caused by a U.S. naval blockade of Venezuela. This move comes after the capture of President Nicolas Maduro by U.S. forces and an agreement for Venezuela to supply oil to the U.S. and other markets.

Read more at Yahoo Finance: Exclusive-Citgo buys first Venezuelan oil since 2019 from Trafigura, sources say