Reuters reveals Venezuela demands prepayment on spot oil sales after buyer defaults

Reuters exclusively reported that Venezuela’s state-run oil and natural gas company Petróleos de Venezuela, S.A. last month began switching most oil sales to prepayment, requiring spot cargo buyers to pay in full before tankers can set sail after several recent defaults. The new payment terms, first communicated in April to companies intermediating in oil sales, sharply reduced May oil exports and left tanks storing the country’s flagship crude grade near full capacity.