PDVSA Cancels Plans to Import U.S. Crude Oil Amid Cash Crunch
- Payment for imported oil needs to be upfront and in cash
- Suppliers declined to accept oil in payment as output falls
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Petroleos de Venezuela SA, which relies heavily on U.S. oil to run its refinery in the island of Curacao, canceled plans to import American grades in April and May as sellers demanded payment ahead of delivery.
The price was right, but parties couldn’t agree on the payment conditions, according to people familiar with the situation. PDVSA typically offers to pay after cargo delivery or makes the payment with oil products and crude. PDVSA was planning to buy 3.5 million barrels of West Texas Intermediate and Domestic Sweet Blend for its Isla refinery in Curacao.