BATON ROUGE, LOUISIANA (By Pietro D. Pitts, Energy Analytics Institute, 27.Feb.2026, Words: 443) — Valero Energy is positioning to capitalize on improved access to the Venezuelan market as sanctions imposed on US president Donald Trump ease and trade flows reopen.
Valero has engaged with 3 authorized sellers of Venezuelan crude oil and expects to purchase up to 6.5 MMbbl in Mar. (~210,00 barrels per day or b/d. If those volumes materialize as planned, Valero would join Chevron Corporation as the largest US refiners of Venezuelan crude, according to a report released on 27 Feb. 2026 released by East Daley Analytics (EDA).
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Chevron imported ~220,000 b/d of Venezuelan crude in Jan. and plans to raise import volumes in the coming months, the Denver-based consultancy said. Phillips 66 and CITGO Petroleum are also joining the trend by moving to buy heavy crude directly from Venezuela’s state-owned PDVSA starting in Apr. 2026.
“This strategy fits well with Valero’s refinery network. Venezuela produces heavy sour crude, and Valero has some of the most advanced heavy-cracking assets on the Gulf Coast. Valero can run these barrels through its Texas City, Bill Greehey and Port Arthur refineries. Valero has ample experience with Venezuelan barrels; before sanctions were imposed in 2019, the company processed ~240,000 b/d of Venezuelan imports,” EDA said.
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Since then, Valero has upgraded its ability to process heavy crude. In 2023, Valero completed a major coker project at Port Arthur, increasing the refinery’s crude throughput capacity to ~435,000 b/d and boosting its ability to upgrade heavy, high-resid crude slates. “The expansion gives Valero more flexibility to absorb Venezuelan volumes today than it had in the pre-sanctions period,” EDA said.
“As Venezuelan volumes return, the impact will extend beyond Valero’s slate into the broader heavy crude market. Venezuelan heavy competes directly with Western Canadian Select (WCS) and Mexican Maya due to similar crude qualities and refining economics. On its 4Q25 earnings call, management acknowledged this dynamic and indicated that Venezuelan crude will comprise a significant portion of its heavy slate in the coming months.
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If Venezuelan crude continues to ramp, it could displace other heavy barrels in the Gulf Coast market, or force these suppliers to lower prices to remain competitive. That risk is particularly acute for Canadian barrels. For example, Valero’s Texas City refinery received ~827,000 bbls of crude in Jan. from South Bow (SOBO) Marketing, a company closely tied to Canadian heavy crude logistics.
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By Pietro D. Pitts reporting from Baton Rouge. © 1999-2026 Energy Analytics Institute (EAI). All Rights Reserved.
