US refiners struggle to absorb sudden surge in Venezuelan oil imports | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]A view of refineries in Freeport, Texas, U.S., June 23, 2025. REUTERS/Joel Angel Juarez [Purchase Licensing Rights, opens new tab]- Companies- Summary- India may be possible buyer for excess crude- Some US refiners say oil cargoes on offer are too expensive- Venezuelan crude exports rose sharply in JanuaryHOUSTON/NE ...

Chevron Corporation (NYSE:CVX) maintains a consistent dividend payout for 37 years, showcasing financial resilience.Despite a significant drop in oil prices, Chevron's dividend yield stands strong at 4.1%, with strategic plans to increase Venezuelan crude oil exports to the U.S.Investor confidence is highlighted by major money managers like BlackRock and Vanguard increasing their holdings, alongside Chevron's solid financial metrics including a P/E ratio of 23.95 and a debt-to-equity ratio of 0.22.Chevron C ...

U.S. refiner Citgo Petroleum has bought Venezuelan crude oil for the first time since it severed ties with its parent, state-run oil firm Petroleos de Venezuela SA, in early 2019, two sources familiar... ...

By Georgina McCartney and Arathy Somasekhar HOUSTON, Jan 21 (Reuters) - Valero bought a cargo of ​Venezuelan crude oil, two sources said on ‌Wednesday, the first deal by a U.S. Gulf Coast refiner ‌struck as part of Washington's deal with Caracas to buy up to 50 million barrels of the South American country's crude. Valero bought the crude ⁠from trading house ‌Vitol, one of the two sources said. The crude was traded for ‍delivery to the U.S. Gulf Coast at a discount of about $8.50 to $9.50 to Brent crude ...

Core Insights - Valero has made a significant move by purchasing a cargo of Venezuelan crude oil, marking the first deal by a U.S. Gulf Coast refiner under the recent agreement between Washington and Caracas to buy up to 50 million barrels of oil [1] Company Actions - The acquisition of Venezuelan crude oil by Valero indicates a strategic shift in sourcing, potentially influenced by geopolitical factors and U.S. policy changes regarding oil imports from Venezuela [1] Industry Implications - This transaction could signal a broader trend in the refining industry, where U.S. refiners may increasingly engage with Venezuelan oil supplies, reflecting a potential easing of restrictions and a response to global oil market dynamics [1]

Core Insights - Venezuela's oil exports have decreased by 75% following the capture of President Nicolas Maduro by U.S. forces, with all oil exports now directed to the U.S. or for domestic refinery use [1] Group 1: Impact on Key Countries - China, which previously imported about 440,000 barrels of Venezuelan oil daily at discounted prices, is now facing potential supply slowdowns [2] - Cuba, heavily reliant on Venezuelan oil, is receiving significantly reduced shipments of less than 20,000 barrels a day [2] Group 2: U.S. Actions and Seizures - The U.S. has been actively seizing sanctioned tankers from a shadow fleet carrying Venezuelan crude, impacting the flow of oil from Venezuela [3] - Approximately 48 million barrels of oil are currently outside Venezuelan waters, not destined for the U.S., with six tankers already seized [4] Group 3: Corporate Involvement - Phillips 66 has refineries capable of processing Venezuelan crude, with CEO Mark Lashier expressing optimism about Venezuela's potential return to the capitalist market [5] - Vitol, a global oil trading firm, secured a $250 million deal for Venezuelan oil, with senior trader John Addison being a significant donor to Trump's re-election campaign [6][8] Group 4: Political Dynamics - The Trump administration is facilitating the sale of Venezuelan oil, with plans to sell between 30 million and 50 million barrels following Maduro's capture [9] - Proceeds from these sales will be managed by the U.S., which intends to oversee Venezuela's oil industry indefinitely [9]

Core Insights - The U.S. is currently receiving a price for Venezuelan crude oil that is 30% higher than what Venezuela received prior to the capture of President Nicolas Maduro by U.S. special forces [1] Group 1 - The U.S. Energy Secretary Chris Wright made the announcement regarding the price increase for Venezuelan crude oil [1]

Core Insights - The article discusses the implications of Donald Trump's interest in Venezuelan oil, suggesting that it may be driven by a desire to boost the US economy through cheaper oil prices as midterm elections approach [1][2] - It highlights the challenges and impracticalities of accessing Venezuelan oil, given the current economic conditions and the state of Venezuela's oil infrastructure [5][7] Economic Context - The global oil market is currently oversupplied, with prices at their lowest since 2021, making it economically unfeasible to extract Venezuelan crude without significant investment [4][5] - Venezuela's oil production is minimal, accounting for only 1% of global production, and its output has been severely hampered by a lack of investment in infrastructure [6] Investment Viability - Major oil companies view Venezuela as "uninvestable" due to the political instability and the risk of contracts being abrogated by future governments [8] - The economic case for investing in Venezuelan oil is weak, especially as the US economy has become less dependent on foreign oil over the years [8][10] Historical Precedents - The article draws parallels between Venezuela and past US interventions in oil-rich countries, noting that while opportunities may seem available, the reality often involves significant risks and challenges [12][15] - Historical examples show that multinational oil companies have often retreated from politically unstable regions, which may apply to Venezuela's current situation [14][15]

Core Insights - The U.S. is strategically importing Venezuelan crude despite being energy-independent, as the domestic oil production does not always match the refining capacity needs [1][5][7] Group 1: U.S. Oil Production and Refining Needs - The shale revolution has transformed U.S. energy production, making it the world's leading oil producer and flooding markets with light, sweet crude [2][11] - U.S. refineries, particularly along the Gulf Coast, were designed to process heavy, sour crude, which is not the primary output of the shale revolution [5][7] - When refineries lack access to sufficient heavy crude, operational efficiency declines, leading to increased costs and fragile fuel supplies [6][7] Group 2: Strategic Implications of Venezuelan Oil Imports - Venezuelan oil, being some of the heaviest crude globally, is essential for U.S. refineries to operate closer to their design capacity, resulting in more gasoline and diesel production at lower prices [7] - Importing Venezuelan oil reduces China's leverage over Venezuela, as China has been a significant buyer using opaque shipping and debt leverage [9] - A transparent U.S.-aligned oil trade with Venezuela limits Russia's ability to exert geopolitical pressure in the Western Hemisphere [10] Group 3: Regional Stability and Security - Cutting off subsidized Venezuelan oil weakens Cuba, which plays a significant role in regional instability and serves as a conduit for Russian and Chinese influence [12][13] - Instability in the region can lead to migration pressures that affect the U.S., highlighting the interconnectedness of energy policy and national security [13][14] - The approach taken by the U.S. is framed as a smart strategy that stabilizes fuel prices and strengthens U.S. industry while undermining adversaries [14]

Core Insights - Venezuelan crude oil is currently being offered to U.S. Gulf Coast refiners at a premium compared to Canadian barrels, indicating a shift in pricing dynamics in the oil market [1] Industry Summary - Venezuelan crude oil pricing is competitive, as it is being sold at a premium, which may reflect changes in supply-demand balance or geopolitical factors affecting oil trade [1]