Venezuelan Sanctions Relief Is Set to Redirect Oil Flows
- Valero, Phillips 66 may elevate intake of Venezuelan crude
- Nation was major supplier to US Gulf refiners pre-sanctions
The sanctions relief comes at a time when global oil supplies have tightened, particularly for crude grades similar to heavy Venezuelan oil, after Saudia Arabia and its allies capped exports.
Photographer: Betty Laura Zapata/BloombergThis article is for subscribers only.
The resumption of unimpeded Venezuelan oil exports after the US eased sanctions will mark yet another major reshuffle to global crude flows in the past two years.
The Biden administration’s decision to relax sanctions appears likely to boost shipments of Venezuelan crude to the US and Europe while squeezing out some deliveries from Canada, Mexico and Colombia. It also means fewer cargoes from the Latin American nation making the long trek to China, currently the top destination for Venezuelan oil.