Five government, shipping and industry?sources?confirmed on Tuesday that Venezuelan and U.S. officials are in talks about exporting Venezuelan oil to refiners located in the?United States. Venezuela has millions barrels of crude oil in tankers and storage tanks, but has not been able to ship them due to the blockade imposed on exports by U.S. President Donald Trump since mid December. The blockade is part of the increasing pressure by the U.S. on Venezuelan President Nicolas Maduro, which culminated with U.S. forces capturing him over the weekend. The deal would divert the crude from China which has been Venezuela's top buyer for the past decade. This is especially true since the United States sanctions companies that are involved in oil trading with Venezuela by 2020. The embargo has forced the state oil company PDVSA to reduce production because it is running out storage space for its oil. One of the sources stated that if PDVSA doesn't find a way soon to?export its oil, it will have to further cut production.

PDVSA, the Venezuelan government and White House officials did not comment immediately. U.S. refineries along the Gulf Coast are able to process Venezuelan heavy crude grades and imported 500,000 barrels a day before Washington imposed energy sanctions.

The exact way in which the sanctioned PDVSA will receive proceeds from oil sales was not immediately apparent.

(source: Reuters)