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Venezuela Sanctions Mean US Naphtha Likely Needs New Home: Kpler

OIL PRODUCTS

The re-imposition of oil sanctions by the US on Venezuela is likely to halt the flow of naphtha from the US to the South American country, according to Kpler.

  • “Venezuela has ramped up buying of US naphtha over the past couple of months,” according to Andon Pavlov, senior manager for downstream analysis at Kpler.
  • Naphtha is used to dilute Venezuela’s heavy crude.
  • Venezuela imported almost 60k b/d of US naphtha in Q1
  • “Given the new sanctions, this flow seems likely to halt, meaning some Iranian condensate will probably head to Venezuela come summer,” Pavlov said
  • “It also means about 50k-60k b/d of US naphtha will now be looking for a new home,” he added.

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