U.S. Gulf Refineries Poised to Take In Venezuelan Heavy Crude

U.S. Gulf Coast refiners from Corpus Christi, Texas, to Pascagoula, Mississippi, are positioned to absorb increased volumes of Venezuelan heavy, sour crude that the U.S. administration plans to bring to market following the recent change in Venezuela’s leadership. These facilities were retooled over decades with complex coking units designed to process dense, high-sulfur feedstocks, making them natural buyers of Venezuelan barrels. The shift could alter crude flows into the Gulf, potentially displacing some competing heavy grades and influencing regional refining margins, with implications for both Oil – Brent Crude and Oil – US Crude benchmarks as traders reassess supply dynamics.

Over the past month, prices for Oil – US Crude (CM:CL) have slipped about 4.14%, while Oil – Brent Crude (CM:BZ) is down roughly 3.44%, reflecting softer sentiment tied to global demand concerns and shifting supply expectations. From a short-term technical perspective, both benchmarks currently show a 1-day signal of Sell for CM:CL and Sell for CM:BZ, indicating ongoing downside pressure and cautious trading conditions despite the prospect of new flows of Venezuelan crude to Gulf Coast refineries. Investors can explore more updates, prices, and analysis across global markets at Commodities.