Venezuela Spot Oil Sales Snarled by Surging Freight Costs

By Lucia Kassai (Bloomberg) — Sales of Venezuelan oil for loading in October stalled after a surge in shipping costs muddled negotiations between the country’s state oil company and buyers of its oil.

Shipping costs — a key component of the delivered price — have more than doubled from the end of August. That’s making Venezuelan crude less competitive with Canadian barrels for US refiners and snarling sales deals, according to people with knowledge of the situation. Canada and Venezuela are the largest suppliers of foreign oil to the US.

Commodity traders such as Vitol Group and Trafigura Group,