Venezuelan oil imports surge in Texas amid war with Iran

U.S. refineries along the Gulf Coast have dramatically increased their purchases of Venezuelan oil, with imports surging in June to compensate for supply disruptions originating from the Middle East due to the war with Iran.

According to U.S. government figures, daily shipments rose from an average of 110,000 barrels in January to 575,000 barrels in June. This represents the highest average volume recorded since 2018. The uptick in imports began after the U.S. detained Nicolás Maduro in January, leading Washington to assume control over Venezuela's oil industry.

Texas has emerged as the principal destination for Venezuelan crude, receiving 43% of the imports, as reported by S&P Global Energy. This is largely due to more than 10 refineries in the state being capable of processing the heavy crude. Louisiana accounted for another 39% of the imports, with the remaining shipments directed to facilities in Mississippi and Delaware.

The return of Venezuelan oil to U.S. refineries coincides with difficulties in transporting crude through the Strait of Hormuz. Intermittent closures of this vital shipping route have impacted supplies from several Middle Eastern countries. This situation has compelled Gulf Coast plants to seek alternative suppliers to replace the barrels that are no longer arriving from the region.

"It is not surprising that the United States is importing a lot of Venezuelan oil, because it is necessary, especially now that the strait is closed," said Debnil Chowdhury, a refining analyst at S&P Global Energy, to The Texas Tribune. Recent federal data indicates that Venezuelan oil purchases nearly quadrupled following the Strait of Hormuz closure in late February. Despite this rapid growth, analysts anticipate the increase may stabilize next year. Venezuela has been producing approximately one million barrels daily in recent months, with about half destined for the Gulf Coast. Projections suggest Venezuelan production could reach around 1.15 million barrels per day by 2027.

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It is not surprising that the United States is importing a lot of Venezuelan oil, because it is necessary, especially now that the strait is closed.