Venezuelan Oil Floods U.S. Market Amid Canadian Wildfire Threat

U.S. fuelmakers are taking advantage of an unexpected opportunity to hedge against potential supply disruptions in Canada by importing large quantities of Venezuelan oil.

Data compiled by Bloomberg shows that imports from Venezuela are on pace to hit 804,000 barrels a day for cargoes arriving in July, the highest level since 2017.

This increase in demand has lifted prices in the U.S. Gulf Coast market, with Venezuelan crude now selling at a discount of about US$10 compared to benchmark ICE Brent.

The uptick in demand provides some relief for Venezuelan crude, which had been struggling due to lower sales from its largest buyer, China.