• 2 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 2 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 2 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 2 days Schlumberger Warns Of Moderating Investment In North America
  • 2 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 2 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 2 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 2 days New Video Game Targets Oil Infrastructure
  • 3 days Shell Restarts Bonny Light Exports
  • 3 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 3 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 3 days British Utility Companies Brace For Major Reforms
  • 3 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 3 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 3 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 3 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 3 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 3 days Rosneft Signs $400M Deal With Kurdistan
  • 4 days Kinder Morgan Warns About Trans Mountain Delays
  • 4 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 4 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 4 days Russia, Saudis Team Up To Boost Fracking Tech
  • 4 days Conflicting News Spurs Doubt On Aramco IPO
  • 5 days Exxon Starts Production At New Refinery In Texas
  • 5 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 5 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 5 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 5 days China To Take 5% Of Rosneft’s Output In New Deal
  • 5 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 5 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 5 days VW Fails To Secure Critical Commodity For EVs
  • 6 days Enbridge Pipeline Expansion Finally Approved
  • 6 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 6 days OPEC Oil Deal Compliance Falls To 86%
  • 6 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 6 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 6 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 6 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 7 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 7 days Aramco Says No Plans To Shelve IPO
Oil Shows Weakness, But Don’t Expect A Plunge

Oil Shows Weakness, But Don’t Expect A Plunge

Oil prices remained firm this…

Can India Overtake China In The EV Revolution?

Can India Overtake China In The EV Revolution?

India wants to drastically increase…

Ban On Venezuela Oil Imports Could Hurt U.S. Refiners

Venezuela

If the U.S. administration decides to impose sanctions on Venezuela that include a ban on crude oil imports from the South American country, refiners on the Gulf Coast might pay a price, according to PIRA Energy’s managing director for oil, Rick Joswick.

The possibility of sanctions against senior government officials in Caracas and against the oil industry of conflict-torn Venezuela surfaced earlier this week, when Washington officials told media “all options were on the table.” This followed President Trump’s statement from Monday that if Caracas goes ahead with its plan for a constituent assembly election on July 30, Washington will respond with “strong and swift economic actions.”

According to Joswick, the impact of any sanctions on U.S. refiners will depend on their severity and extent. For instance, he said, if the administration opts for a duty on Venezuelan oil in the range of US$2-3 per barrel, refiners will adapt. If, however, Washington goes for a full ban from August 1, Gulf Coast refiners will be hard pressed to find alternative suppliers of heavy crude urgently.

Venezuela is the third-largest supplier of crude oil to the U.S., and as of April it was also the largest supplier of heavy crude to Gulf Coast refineries, feeding 795,000 barrels daily into the processing facilities.

Related: Will Oil Inventories Continue To Fall Over The Summer?

The latest chapter in the Venezuelan crisis started after President Nicolas Maduro called a vote for a special parliament—a constituent assembly—that could amend the country’s constitution, which many observers outside Venezuela consider an attempt to stifle the local opposition and cement the Socialists in power.

Besides the U.S., Colombia, France, Spain, and the EU have called on Maduro to cancel the election, while the Venezuelan opposition called the first nationwide strike since 2002 yesterday. According to opposition sources, 85 percent of the country has joined the strike. As of today, three people have been reported dead and more than 300 have been arrested.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Naomi on July 21 2017 said:
    No other refiners can use Venezuelan crude. Canada could substitute for half of Venezuelan crude to Gulf refiners under current plans.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News