Sources and documents say that trading houses will begin exporting Venezuelan LPG.

According to two sources, and a shipping documentation seen on Monday, trading houses are preparing to load and export Venezuelan LPG as part of a 50 million barrel oil supply deal between Caracas and Washington.

Vitol & Trafigura were awarded the first U.S. licensing earlier this month to 'handle supplies of the $2 billion flagship agreement, which aims drain the accumulated?inventory since the U.S. implemented an oil blockade against the?country last December. Shipping data shows that the companies have exported around 10 million barrels Venezuelan crude oil since December.

Now, the trading houses are also preparing to export

residual fuel oil

LPG is a good example.

Fuel oil is one of the products Venezuela produces in surplus due to its processing of extra heavy crude by refineries. However, LPG has not been produced in excess for years as all production was used to meet domestic demands.

Delcy Rodriguez, Venezuela's interim oil minister and interim president, has said that the country will soon be exporting LPG, after Venezuela's total fuel demand last year was met by domestic production.

Trafigura chartered the Singapore-flagged'vessel Chrysopigi lady, which was approaching Venezuela’s Jose port to pick up a LPG shipment on?Monday, according to LSEG ship data.

Trafigura, as well as Venezuela's PDVSA state-run company, did not respond to comments immediately.

(source: Reuters)