Iraqi Heavy Crude Seen as Uneconomical Substitute for Venezuelan Supply in U.S. Market

Iraqi heavy crude is unlikely to serve as a practical replacement for Venezuelan barrels in the U.S. market, according to analysis cited by Shafaq News. Iraqi economist Nabil Al-Marsoumi noted that current shipping economics make large-scale redirection of Iraqi heavy crude to the United States uneconomical, even as U.S. sanctions and tanker blockades threaten flows of extra-heavy Venezuelan oil. The constraints on substituting Venezuelan grades underscore the tightness in the heavy and sour crude segment, which could influence pricing dynamics for both Oil – US Crude and Oil – Brent Crude as refiners reliant on such feedstocks face limited alternatives.

Over the past month, prices for Oil – US Crude have fallen about 5.99%, while Oil – Brent Crude has declined roughly 6.21%, reflecting broader market concerns over demand, macroeconomic uncertainty, and shifting trade flows. From a short-term technical perspective, both benchmarks are currently flashing a bearish signal, with Sell on U.S. crude and Sell on Brent, suggesting ongoing downside pressure despite potential supply disruptions in heavy crude. Investors can explore more updates, prices, and analysis across global markets at Commodities.