U.S. refiner Phillips 66 can process around 250,000 barrels per day of Venezuelan crude, CEO Mark Lashier said at a conference in Houston recently.
The price for Venezuelan crude does, however, have to be competitive, and Venezuelan crude may displace some other sources of heavy crude including Western Canadian Select, Lashier said.
“It’ll kind of rebalance and as always, find a new normal,” the executive added.
Phillips 66 purchased a cargo of Venezuelan crude from trading house Vitol last month. The cargo was traded for delivery to the U.S. Gulf Coast at a discount of about $8.50 to $9.50 a barrel to Brent crude , sources said.
Before sanctions were imposed on Venezuela in 2019, several large U.S. Gulf Coast refineries bought and processed up to 800,000 bpd of Venezuela's heavy oil, according to U.S. government data.
