Caribbean Net News: Venezuela cuts October gasoline exports to Cuba

NEW YORK, USA (Reuters): Venezuela's state-owned oil firm PDVSA has cut its October unleaded gasoline export flow to neighboring Cuba due to refinery problems, oil traders and ship brokers said on Friday.

In the past two weeks, PDVSA shut its 54,000 barrels per day cat cracker at El Palito refinery after an electrical outage, and its Puerto La Cruz refinery was also experiencing operational problems.

The export flow stoppage to Cuba was confirmed by a source close to PDVSA.

"Venezuela will not be exporting any unleaded gasoline to Cuba in October," said a ship broker in the United States.

A PDVSA official did not immediately respond to request for comment on Friday.

Venezuela typically exports about four cargoes of gasoline a month to Cuba.

However, the monthly export of four gas oil cargoes from Venezuela to Cuba remained intact, they said.

Gasoline exports in October were expected to be limited to loading at Curacao, with no export loading scheduled at El Palito, the broker said.

"Term gasoline lifting by Chevron and ExxonMobill would continue in October at Curacao," he said.

The export stoppage came as a surprise to traders and ship brokers following the planned gasoline sale to Iran in a oil-for-equipment barter deal.

PDVSA fixed the 38,000-tonne-capacity tanker St. Marco at a lump sum of $1.325 million to load on Oct. 20-25 in the Caribbean for delivery to Iran.

Also, PDVSA bought from BP late last week 300,000 barrels of gasoline for October 15-17 lifting.

"The whole scenario doesn't make a lot of sense," said a trader in the United States. "Venezuela usually prioritizes Cuba above the rest."

The export flow to the United States was expected to remain normal in October due to PDVSA's long-term contractual commitments to oil traders, traders and ship brokers said.

Venezuelan gasoline exports to the United States were pegged at about 51,000 barrels per day in July, according to the latest data published by the Energy Information Agency.

"(President Hugo) Chavez will not risk jeopardizing the oil export business with his clients," the trader said.

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