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]