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Valero Poised to Lead Venezuelan Crude Imports
14 Feb
Summary
- Valero plans to buy millions of barrels of Venezuelan crude for March.
- This could make Valero the top foreign refiner of Venezuelan oil.
- Venezuelan oil production and exports are expected to increase dramatically.
Valero Energy is poised to become the foremost foreign refiner of Venezuelan crude in March, with plans to acquire up to 6.5 million barrels for its Gulf Coast facilities. This potential acquisition marks a substantial increase in Valero's processing of Venezuelan oil, surpassing volumes seen since early 2019.
This development coincides with an expected surge in Venezuela's oil output and exports. The nation's production has already reached 1 million barrels per day, with exports climbing to approximately 800,000 barrels per day in January. U.S. energy officials anticipate a dramatic increase in these figures in the near future.
Valero's increased interest follows the easing of U.S. sanctions and the establishment of new oil supply deals. The company, which possesses significant refining capacity for heavy Venezuelan oil, had a pre-sanctions agreement with Venezuela's state oil company, PDVSA. Traders like Trafigura and Vitol are also involved in facilitating these oil movements.
