Valero Makes First Venezuelan Crude Purchase Under New U.S.-Caracas Deal

Valero Energy has purchased a cargo of Venezuelan crude oil in what sources describe as the first transaction by a U.S. Gulf Coast refiner under Washington’s recent agreement with Caracas, which allows the purchase of up to 50 million barrels of Venezuelan crude. The deal marks a significant shift in U.S.-Venezuela energy trade following years of strict sanctions.

According to two industry sources, Valero acquired the cargo from global trading house Vitol. The crude is scheduled for delivery to the U.S. Gulf Coast and was priced at a discount of approximately $8.50 to $9.50 per barrel compared to Brent crude, reflecting the heavy nature of Venezuelan oil and the market dynamics surrounding its re-entry into U.S. refining systems.

While Valero has historically processed Venezuelan crude through arrangements linked to Chevron, which holds a special license to operate in Venezuela, this transaction is notable because it represents the refiner’s first direct purchase from an independent trading house. Trading firms like Vitol were only authorized earlier this month to market Venezuelan crude, following a partial easing of U.S. sanctions.

Market activity around Venezuelan oil has accelerated in recent weeks. Offers for Venezuela’s flagship Merey heavy crude began circulating among U.S. refiners last week at discounts ranging from $6 to $7.50 per barrel to Brent. The wider discount seen in Valero’s deal suggests competitive pricing as Venezuela seeks to regain lost market share in the U.S. Gulf Coast refining hub.

Before U.S. sanctions were imposed in 2019, Venezuelan heavy crude was a key feedstock for complex Gulf Coast refineries. U.S. government data shows that prior to the sanctions, several major refiners imported and processed around 800,000 barrels per day of Venezuelan oil. These refineries were specifically configured to handle heavy, sour crudes like Merey.

The new agreement between Washington and Caracas has reopened the door for Venezuelan crude exports to the United States, potentially reshaping crude supply flows, refining economics, and price differentials in the global oil market. As more refiners and traders test the waters, Venezuelan crude could once again become a regular feature in U.S. energy trade.