México

Guyana

Trinidad
& Tobago




Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

U.S. refiners scramble as White House eyes Venezuela sanctions

 


 


By Marianna Parraga , Collin Eaton / Reuters

SAO PAULO
Petroleumworld 01 18 2019

U.S. refiners are bidding up prices for scarce types of crude oil needed for their most sophisticated plants as the United States reconsiders harsher sanctions on Venezuela that could further reduce imports of the country's oil.

Trump administration officials in recent days met with U.S. oil company executives to lay out potential actions in response to the Jan. 10 inauguration of Venezuelan President Nicolas Maduro in an election it considered illegitimate.

Among other steps, U.S. officials have recognized the opposition-run Venezuelan congress as the only legitimately elected authority. But the proposals that would most affect the energy industry involve banning U.S. exports of refined products or limiting oil imports - a move that, until now, the White House has not taken even after sanctioning individuals and barring access to U.S. banks.

“It's more serious than I've heard before,” said a refining industry executive familiar with the White House discussions. “They are setting the table to pull the trigger if they have to.”

U.S. refiners have few supply alternatives if the Trump administration were to cut off crude imports from that country. Supplies of the heavy oils preferred by Gulf Coast refiners have been harder to secure in recent months because of cutbacks and production curbs in Western Canada, Mexico and Venezuela.

One type of U.S. heavy oil, called Mars, traded at a $6.80 per barrel premium to U.S. crude futures on Thursday, the strongest in nearly five years and up from a $4.50 per barrel premium on Tuesday, a U.S. oil broker said.

U.S. oil companies that depend on Venezuelan oil have opposed past proposals that would halt imports and did so again this week, said several people close to the talks. Two big refiners, Phillips 66 and PBF Energy, cut their dependence on the South American country last year, according to U.S. Energy Information Administration data.

Latin American advisors have warned the administration that oil sanctions could backfire by making the United States appear too involved in the Venezuelan political crisis, said a person familiar with talks among the White House, the National Security Council and oil firms.

U.S. Secretary of State Mike Pompeo has become directly involved, accelerating possible financial and political steps against Maduro, the person said. State Department spokespeople were not immediately available for comment.

Venezuela exported 500,013 barrels per day to the United States last year, down from 591,422 bpd in 2017.

The largest U.S. importers of Venezuelan oil last year were Citgo Petroleum, the U.S. refining arm of Venezuela's state-run oil company PDVSA, Valero Energy, Chevron Corp and PBF Energy.

Citgo, Valero and PBF Energy either did not respond to requests for comment or declined to comment. Chevron declined to comment on the potential for sanctions, but said it actively manages supplies and has plans in place to make necessary adjustments to ensure it can supply customers.

White House officials are aware hitting Venezuela with oil sanctions could deepen the humanitarian crisis there and hurt U.S. businesses and consumers by raising fuel prices.

“With regard to sanctions, all options are on the table,” said Garrett Marquis, spokesman for the White House National Security Council who declined to discuss specifics of the deliberations.

Mexico, a supplier of heavy crude, reported its production dropped to 1.72 million barrels per day in November, from 1.93 million bpd at the start of the year.

 


________________________


We invite you to join us as a sponsor.

Circulated Videos, Articles, Opinions and Reports which carry your name and brand are used to target Entrepreneurs through our site, promoting your organization’s services. The opportunity is to insert in our stories pages short attention-grabbing videos, or to publish your own feature stories.

________________________

Reporting by Marianna Parraga and Colin Eaton; Additional reporting by Jarrett Renshaw in New York and Matt Spetalnick in Washington; Writing by Gary McWilliams; Editing by Sandra Maler from Reuters.

reuters.com 01 17 2019

Hit your target - Advertise with us

PW 300.000 plus request per week

Copyright© 1999-2019 Petroleumworld or respective author or news agency. All rights reserved.

We welcome the use of Petroleumworld™ (PW) stories by anyone provided it mentions Petroleumworld.com as the source.

Other stories you have to get authorization by its authors. Internet web links to http://www.petroleumworld.com are appreciated.

Petroleumworld welcomes your feedback and comments, share your thoughts on this article, your feedback is important to us!

We invite all our readers to share with us
their views and comments about this article.

Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1


 

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher: Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2019, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2019, Petroleumworld ™  / Elio Ohep - All rights reserved

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.