U.S. Refiners Struggle to Absorb Surge in Venezuelan Oil Imports

Trading firms face challenges finding buyers for Venezuelan crude after recent supply deal between Caracas and Washington.

Published on Feb. 3, 2026

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Oil refiners on the U.S. Gulf Coast are struggling to absorb a rapid surge in Venezuelan crude shipments since last month's $2 billion supply deal between Caracas and Washington, pressuring prices and leaving some volumes unsold, according to traders and shipping data. Trading houses Vitol and Trafigura, which were granted U.S. licenses to market and sell Venezuelan oil, are finding it harder to secure enough buyers among Gulf Coast refiners as Chevron also raises exports quickly.

Why it matters

The soft U.S. demand represents an early obstacle for President Trump's hopes of sending the majority of Venezuela's oil to the United States after U.S. forces captured President Maduro last month. The influx of Venezuelan crude is creating challenges for refiners who must adjust their operations to process the heavier grades, and is putting pressure on prices compared to competing Canadian heavy oil.

The details

Trading houses Vitol and Trafigura struck early deals to sell Venezuelan oil cargoes to refiners in the U.S. and Europe, but are now facing reluctance from U.S. refiners to buy the crude, with some complaining that prices remain high compared to Canadian heavy grades. Venezuelan heavy oil cargoes for delivery at the Gulf Coast are being offered at about $9.50 per barrel below benchmark Brent, versus discounts of between $6 and $7.50 per barrel in mid-January.

  • Last month, total Venezuelan oil exports to the U.S. almost tripled to 284,000 barrels per day (bpd).
  • The U.S. was absorbing some 500,000 bpd of Venezuelan oil before Washington imposed sanctions on the country in 2019, but exports to the U.S. went to zero in mid-2025 after Trump revoked all licenses to trade and ship.

The players

Vitol

A trading house that was granted a U.S. license to market and sell millions of barrels of Venezuelan oil following the U.S. operation and a subsequent supply agreement with interim President Delcy Rodriguez.

Trafigura

A trading house that was granted a U.S. license to market and sell millions of barrels of Venezuelan oil following the U.S. operation and a subsequent supply agreement with interim President Delcy Rodriguez.

Chevron

The only U.S. oil major operating in Venezuela, which increased its exports of Venezuelan crude to 220,000 bpd in January from 99,000 bpd in December.

Mark Lashier

The chief executive of refiner Phillips 66, who said the company can process around 250,000 bpd of Venezuelan crude, but prices must be competitive for Venezuelan grades to displace other sources of heavy oil.

Mike Wirth

The CEO of Chevron, who told investors that the company's refining network can process up to 150,000 bpd of Venezuela's heavy grades, which implies it must store or market the remaining portion among other refiners.

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What they’re saying

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The U.S. said after seizing Maduro that it would control Venezuela's oil sales indefinitely, and a potential relief valve for the Venezuelan oil could come from India, which Trump announced a trade deal with on Monday that includes India lowering trade barriers and stopping its purchases of Russian oil in exchange for buying oil from the U.S. and potentially Venezuela.

The takeaway

The influx of Venezuelan crude is creating challenges for U.S. refiners who must adjust their operations to process the heavier grades, and is putting pressure on prices compared to competing Canadian heavy oil, highlighting the complexities of the U.S. government's efforts to control Venezuela's oil exports and the broader geopolitical dynamics at play.