U.S. Refiners Eye Venezuelan Crude Direct from PDVSA

U.S. refiners Phillips 66 and Citgo Petroleum are aiming to purchase heavy crude directly from Venezuela's state oil firm, PDVSA, starting in April, with intentions to boost profits. This strategy comes as Washington expands oil export permissions from Venezuela, offering new trading possibilities.

Phillips 66, among the key U.S. refiners, is aligning its operations to source directly from PDVSA while Citgo seeks delivery to its U.S. Gulf Coast facilities despite logistical challenges. Their moves are bolstered by recent allowances made under a general license by the Trump administration, enabling broader Venezuelan oil exports.

Industry insiders anticipate regulatory hurdles, as potential buyers must secure individual clearances from the U.S. Treasury. Meanwhile, Venezuelan crude prices have softened with increasing shipments moving to the U.S. market, altering prior price dynamics observed in deals handled by trading houses Vitol and Trafigura.