As Sanctions Lift on Venezuelan Oil, China’s Refiners Will Face Stiffer Competition
- Competition from India and the US is likely to raise prices
- Merey grade has been favored by China’s teapot refiners
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The rollback of American sanctions on Venezuelan oil could rob Chinese buyers of one of their cheapest sources of crude.
Venezuela’s Merey crude is currently being delivered to China at a discount of as much as $20 a barrel compared to Brent, according to traders. That’s cheaper than sanctioned Iranian oil, which is available at a discount of about $13. Other comparable grades, such as Canada’s Cold Lake, trade around parity to the international price.