Sales of Venezuelan oil for October loading have stalled after a surge in shipping costs muddled negotiations between PDVSA and buyers, Bloomberg reported Wednesday, citing people with knowledge of the situation.

Shipping costs have more than doubled since the end of August, making Venezuelan crude less competitive with Canadian barrels for US refiners, according to the people, the report said.

Buyers are currently being offered Venezuelan oil at a discount of around $14 to benchmark ICE Brent for October loading, the people said, according to the report.

With shipping costs to the US Gulf Coast near $7 a barrel, the oil arrives at a discount of $7 a barrel, at least $5 more expensive than competing Canadian supplies, according to the people, Bloomberg reported.

Vitol and Trafigura did not immediately respond to requests for comment from MT Newswires.

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