Venezuela’s PDVSA has started asking spot market buyers of its crude oil to pay in advance for the shipments after several recent payment defaults, Reuters has reported , citing several unnamed sources familiar with the situation. The changes and negotiations over the advanced payments have caused some delays to vessels departing the country, contributing to a build-up of crude oil stocks that are overtaxing Venezuela’s blending facilities—a necessary step in transforming the country’s extra-heavy crude to something exportable. According to the report, at least three tankers with Venezuela crude left the country without the buyers paying for them. As a result, PDVSA switched to advance payments in full last month. This has, in turn, prompted middlemen to ask for discounts, according to the Reuters sources. In some cases, the discounts requested are $47 per barrel of Venezuela’s flagship heavy crude blend Merey 16 to Brent crude. Earlier this year, […]