Respol SA looks to gobble up Canadian crude
Another major refiner is looking to snap up Canadian crude due to the threat of more U.S. sanctions against Venezuela and the possibility that Mexico will offer less favourable terms when it comes to agreeing exports for next year.
Repsol SA is in talks with trading houses and producers for a contract to buy as much as 2 million barrels of Canadian oil a month, according to people familiar with the matter, who spoke on condition of anonymity.
Spain’s biggest oil company is following in the footsteps of India’s Reliance Industries Ltd., which recently signed a six-month purchase deal for heavy Canadian oil.
Its motivation is an expected escalation of U.S. sanctions against Venezuela’s battered oil industry, with the Trump administration looking to close a loophole that allowed so-called crude-for-diesel swaps on humanitarian grounds. And contract negotiations that are under way with Mexico could result in lower export volumes next year.
Repsol declined to comment while the trading arm of Mexico’s state oil giant didn’t respond to emailed requests for comment.