Citgo Not Interested in Venezuelan Crude Purchases

US refiner Citgo Petroleum, under the administration of the Venezuelan opposition, has decided against buying Venezuelan crude despite eased US sanctions in October according to Bloomberg reports.

• Citgo was once the top US processor of Venezuelan oil. It had previously said in 2022 that it would be willing to import Venezuelan oil if sanctions eased – claiming they didn’t want to operate at a disadvantage to other refiners.
• Citgo benefits from higher heavy crude availability, which it sources from other Latin American producers as well as flows from Canada to replace lost Venezuelan volumes in recent years.
• The refiner is currently involved in litigation over the sale of its control to settle claims against the Venezuelan government and its oil company.
• The biggest refiner in the US, Marathon, said they were not interested in the auction process for Citgo’s refineries – instead they are focused on maximizing existing refineries.
• Prior to the auction process, Marathon had been expected to be one of the main bidders, having shown interest in the past.