U.S. oil refiners pare exposure to Venezuelan crude imports
JULY 27, 2017 / 3:55 PM / 19 HOURS AGO
Erwin Seba and Marianna Parraga
(Reuters) - U.S. refiners are shifting away from processing heavy crude, lessening the potential impact on their businesses and motorists of any supply disruptions from Venezuela as the Trump administration considers new sanctions on the country.
Refiners Valero Energy Corp and Marathon Petroleum Corp on Thursday said they plan to run more light and sweet crudes this quarter, continuing a trend away from heavy, sour crudes supplied by Venezuela and other OPEC producers.
Deliveries of Venezuelan crude to Citgo Petroleum, the U.S. refining arm of state-run Petroleos de Venezuela [PDVSAC.UL], slipped to about 70,000 barrels per day (bpd) last month from an average of some 200,000 bpd earlier this year. Phillips 66, the fourth-largest importer of Venezuelan crude this year, received about half its expected supply in June.
U.S. imports of Venezuelan crude fell 32 percent in June to a 13-year low of 491,000 bpd, according to Reuters data. PDVSA's exports have declined this year as production and shipping problems cut its ability to meet commitments.
On Wednesday, the Trump administration imposed sanctions on 13 current or former Venezuela officials to pressure its president to scrap plans for a Constituent Assembly, which would have power to rewrite the constitution. Additional financial or import sanctions that would choke off the country's access to U.S. dollars for its oil also are being weighed.
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https://www.reuters.com/article/us-usa-refiners-venezuela-idUSKBN1AC36M
