Venezuelan Crude Floods US Refineries Despite Capacity Concerns

Venezuelan crude supply continues to grow, slowly, and its market share along the US Gulf Coast is increasing. Market players and experts agree that there's still room for more Venezuelan barrels to enter the region's massive refining hub, also known as Padd 3.

A recent US supply deal with private producer North American Blue Energy Partners (Nabep) could bring even more heavy Venezuelan barrels to Padd 3 refiners, who would likely swap out stocks of other grades better suited for the Strategic Petroleum Reserve (SPR).

The availability of cheaper Canadian heavy barrels has not deterred demand for Venezuelan crude. In fact, Venezuela's crude output has staged a dramatic recovery since the US' de facto seizure of the country's oil industry earlier this year.