US refineries taking in half of Venezuela's oil output, official says
Venezuela is now sending more than 500,000 barrels per day of crude to Gulf Coast refineries in the United States, according to a senior US official. The figure amounts to about half of Venezuela's current oil output, the official said at an industry event in Houston on Tuesday. The development marks a sharp increase from late 2025, when Venezuelan exports to the US were far lower.
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Under Secretary of Energy Kyle Haustveit said the flow is coming from a national output of roughly 1.25 million barrels per day. He said the oil is moving to refineries built specifically to process that type of crude, referring to Venezuela's heavy, sour oil. Haustveit also said the United States is sending more than 100,000 barrels per day of naphtha to Venezuela to help blend the heavier crude and support production.
The arrangement has immediate commercial significance for both sides. Gulf Coast refineries are designed to handle heavy sour grades, making Venezuelan crude a practical feedstock for those plants. Venezuelan officials at the same event said they want to raise output further, with Jovanny Martinez, a vice president at state oil company PDVSA, saying production could reach 1.245 million barrels per day by the end of August.
The figures point to a notable shift in a trade relationship that had been constrained for years by sanctions, underinvestment and political tensions. Venezuela holds the world's largest proven oil reserves, but its output had fallen to about 1 percent of global supply after years of decline. The latest increase also comes as Washington and Caracas remain locked in a broader political dispute, making the energy trade a significant part of the wider relationship.
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Martinez said exports were up 19.7 percent this year and fuel output had risen 12.9 percent, with domestic fuel supply up 5.4 percent. He also said Venezuela's refineries should be improved, modernised and expanded, and that the country needs more diluents for heavier grades that should be developed domestically. Those comments suggest Caracas is trying to stabilise production while relying on imported naphtha to keep crude flowing.
What remains unclear is how durable the current trade pattern will be and whether the volumes can be sustained at the levels described by the US official. It is also not clear how the arrangement fits with broader policy changes between Washington and Caracas, or whether the reported flows will continue to rise. Market participants will be watching for confirmation of export data, refinery intake levels and any further statements from both governments.
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