US refiners struggle to absorb sudden surge in Venezuelan oil imports

By Marianna Parraga and Shariq Khan

HOUSTON/NEW YORK, Feb 3 (Reuters) - Oil refiners connected the U.S. Gulf Coast are struggling to sorb a accelerated surge successful Venezuelan crude shipments since past month's flagship $2 cardinal proviso woody betwixt Caracas and Washington, pressuring prices and leaving immoderate volumes unsold, according to traders and shipping data.

The brushed U.S. request represents ​an aboriginal obstacle for President Donald Trump's hopes of sending the bulk of the South American country's lipid to the United States since U.S. forces captured Venezuela's President Nicolas Maduro ‌last period successful a raid successful Caracas.

Trading houses Vitol and Trafigura were granted U.S. licenses to marketplace and merchantability millions of barrels of Venezuelan lipid pursuing the U.S. cognition and a consequent proviso statement with interim President Delcy Rodriguez.

The trading houses, ‌which joined vigor large Chevron successful holding support to export Venezuelan oil, struck respective aboriginal deals to merchantability immoderate cargoes to refiners successful the U.S. and Europe. However, with Chevron besides raising exports quickly, the trading companies are present uncovering it harder to unafraid capable buyers among Gulf Coast refiners, traders said.

"We're each facing this contented wherever there's much to spot and not capable takers," 1 of the traders said, citing reluctance from U.S. refiners to bargain Venezuelan crude. Some refiners are complaining that prices, albeit declining, stay precocious compared to competing Canadian dense grades.

Venezuelan dense lipid cargoes for transportation astatine the Gulf Coast are being offered astatine ⁠about $9.50 per tube beneath benchmark Brent, versus discounts of betwixt $6 and $7.50 per ‌barrel successful mid-January.

Last month, full Venezuelan lipid exports to the U.S. astir tripled to 284,000 barrels per time (bpd), according to information based connected tanker movements.

The U.S. was absorbing immoderate 500,000 bpd of Venezuelan lipid earlier Washington imposed sanctions connected the state successful 2019. But exports to the U.S. went to zero successful mid-2025 ‍after Trump revoked each licenses to commercialized and ship.

Reaching the U.S. refiners' maximum capableness again volition necessitate time, 1 of the traders said, successful portion due to the fact that immoderate facilities would necessitate adjustments to process heavier oil.

The main enforcement of refiner Phillips 66, Mark Lashier, said connected Tuesday the institution tin process astir 250,000 bpd of Venezuelan crude, but prices indispensable beryllium competitory for Venezuelan grades to displace different sources of dense oil.

Chevron and Trafigura declined to comment. ​Venezuela's authorities lipid steadfast PDVSA and Vitol did not reply to requests for comment.