Overview
- A senior U.S. official told Reuters that Venezuelan oil sales to the United States are beginning immediately with an initial 30–50 million barrels and will continue on an ongoing basis.
- The administration plans to selectively ease sanctions to facilitate shipments of Venezuelan crude and refined products into global markets.
- Officials indicated that much of the crude now heading to U.S. buyers would otherwise have been exported to China.
- Valero Energy shares traded up 3.39% to $184.32 on Wednesday, following an 8.13% gain from Dec. 30 to Jan. 6, as investors priced in potential feedstock relief.
- Barclays estimates Valero could process an additional 300,000–400,000 barrels per day of Venezuelan crude if supplies resume, while Jim Cramer flagged refiners capable of handling heavy crude as likely beneficiaries.