U.S. oil market fallout over Venezuela

American oil markets are readying for fallout from potential U.S. government sanctions on Venezuela's vital oil sector after July 30’s election deemed to have been a "sham" by Washington, D.C. Venezuelan President Nicolas Maduro celebrated the election of a new legislative superbody July 31, which would have power to dissolve opposition parties in Congress. U.S. crude futures jumped $50-plus a barrel before retreating, and following U.S. official announcements of potential sanctions. It’s unclear what those sanctions may be, but was expected to include a ban on Venezuelan oil shipments to America – including lighter U.S. crude exports Venezuela mixes with its heavy crude to ready it for market ready. Venezuela is a key source of heavy crude supplies for U.S. refiners. U.S. imports of Venezuelan crude in the first four months averaged about 9% percent of all oil imports. U.S. refiners such as Valero Energy Corp. have been shifting away from processing heavy crudes such as those supplied by Venezuela and other OPEC producers, lessening the potential impact on their businesses. (Source: Marine Link 07/31/17) Gulf Coast Note: Valero has refineries in Meraux and Lake Charles, La.