Core Viewpoint - Valero Energy is poised to become the leading foreign refiner of Venezuelan crude oil, planning to purchase up to 6.5 million barrels in March for its Gulf Coast refineries, following the easing of U.S. sanctions on Venezuela [1] Group 1: Valero's Position and Actions - Valero was among the first U.S. refiners to resume Venezuelan crude imports after a $2 billion oil supply deal with Venezuela's interim government and the easing of sanctions [2] - If Valero successfully acquires 10 or more cargoes in March, it could process approximately 210,000 barrels per day, surpassing Chevron as the top U.S. refiner of Venezuelan crude [2] - This would mark the highest volume of Venezuelan crude processed by Valero since U.S. sanctions were imposed on Venezuela's oil industry in January 2019 [3] Group 2: Chevron's Role and Supply Dynamics - Chevron is expected to increase its Venezuelan crude exports to around 300,000 barrels per day in March, up from 220,000 barrels per day in January, with a significant portion likely going to Valero [3] - Valero is anticipated to receive most of its planned import volume from Chevron in March, highlighting the interdependence between the two companies [4] Group 3: Market Context and Future Expectations - Valero has engaged in negotiations with trading houses like Trafigura for additional cargoes, which were among the first authorized by the U.S. government to trade Venezuelan oil [4] - A Valero spokesperson indicated that Venezuelan crude is expected to constitute a significant portion of its heavy-crude purchases in February and March [6] - Valero has a historical long-term supply agreement with PDVSA for crude purchases prior to the sanctions, indicating established ties with Venezuela's state oil company [7]

By Saeed Azhar, Tatiana Bautzer and Marianna Parraga NEW YORK/HOUSTON, Jan 9 (Reuters) - The U.S. involvement in Venezuela's oil sector offers a potential opportunity for international banks, with JPMorgan Chase in an advantageous spot due to its history in the country and past involvement with international trade financing. A clutch of banks including JPMorgan and Citigroup have historically operated in the country, but reduced operations or ​pulled out in the last few decades. U.S. banks now, however, ...

Group 1 - Chevron has terminated its oil production, service, and procurement contracts in Venezuela, delegating joint-venture governance to PDVSA while retaining direct staff in the country [1] - The U.S. State and Treasury departments set a deadline of May 27 for companies like Chevron to receive Venezuelan crude oil and byproducts, following the revocation of authorizations by the Biden administration [2] - PDVSA canceled cargoes scheduled for Chevron due to payment uncertainties linked to U.S. sanctions, which also led to the end of Chevron's operating license in Venezuela [4] Group 2 - Under new U.S. authorization, Chevron is prohibited from operating oilfields, exporting oil, or expanding activities in Venezuela to avoid payments to the Maduro administration [7] - Analysts predict that without licenses, Venezuela's oil output and exports could decline by 15-30% by the end of 2026, following a recovery that brought average crude output to about 1 million barrels per day this year [10] - The Venezuelan government, led by Nicolas Maduro, rejects U.S. sanctions, claiming they constitute an "economic war" [10]