Venezuela Oil Imports Surge in Texas Amid Iran War Disruptions

Oil imports from Venezuela have surged in Texas refineries as the Iran war has disrupted Middle Eastern supply lines. Since January, average daily imports of Venezuelan crude oil into the Gulf Coast have increased from around 110,000 barrels per day to over 575,000 barrels per day, according to federal data.

The largest share of these imports, 43%, has gone to Texas refineries, which are equipped to handle Venezuela's heavy crude grade. The majority of this oil is being used by more than 10 refineries in the state.

Analysts say it's no surprise that the U.S. is importing a lot of Venezuelan barrels, as they're needed, especially with the Strait of Hormuz closed. 'You need whatever barrel of heavy crude you can get,' said Debnil Chowdhury, a refining analyst at S&P Global Energy.

However, these increases are expected to level off in the coming year, as Venezuela's average production levels have reached around 1 million barrels per day and are projected to plateau at about 1.15 million barrels per day by 2027.