Venezuela sanctions alter crude oil flows from Latin America to US Gulf

Imports of Latin American crudes into the US Gulf Coast from January to date have plummeted 30% versus the same period in 2017, to 280 million barrels. This is mostly due to a lack of imports from Venezuela, US Customs Bureau and Platts Analytics data showed. The removal of Venezuelan barrels from regional trade due to US sanctions has created openings for other Latin American producers in the US, driving demand for grades similar to the heavy sour crudes Venezuela produces, in particular. However, competition with Canadian crudes is likely to intensify, given soaring freight rates. Replacing Venezuelan crude Six months after the last cargo of Venezuelan crude was imported into the US, the volume imported by US refiners of crudes produced by Mexico, Colombia, Ecuador, Brazil and Argentina have been insufficient to replace the barrels lost due to the US sanctions imposed on Venezuelan state PDVSA in late January. Imports of Venezuelan crude from January to early October in 2018 totaled 143.5 million barrels while in 2019 only 55 million barrels were recorded from January to April 24, the day when Chevron imported the last cargo of Hamaca crude into Pascagoula, Mississippi. No Venezuelan crude has been imported into… continue reading

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Source: CTRM Center

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