A full-scale resumption of Venezuelan oil exports would benefit U.S. refiners, lowering production costs. Canadian firms and small Chinese refiners would lose out if Venezuelan crude is diverted to the U.S. President Trump wants U.S. companies to rebuild Venezuela’s oil industry and run the country after seizing President Maduro.

U.S. Gulf Coast refineries are capable of quickly absorbing Venezuelan oil exports if sanctions are lifted. Refineries like Valero, PBF Energy, and Phillips 66 could process significant amounts of Venezuelan crude. Analysts note that U.S. Gulf Coast refineries can handle 3 to 4 million bpd of heavy crude.

Exxon and other major companies could also benefit from purchasing Venezuelan crude. Chevron is currently the only U.S. oil major operating in Venezuela under a sanctions exemption. Gulf Coast refineries historically familiar with Venezuelan grades could receive cheaper crude, offering price relief for motorists.

U.S. refiners have been importing more crude from other countries since Venezuelan sanctions were imposed. An increase in Venezuelan crude imports would displace crudes from Canada, impacting Canadian oil producers. Chinese refiners, the largest buyers of Venezuelan crude, may turn to Canadian and Middle Eastern crudes if supplies are redirected long-term.

Chinese teapot refineries may face higher costs if they switch to Canadian oil, as Venezuelan crude is the cheapest among their supplies. Indian refiners like Reliance Industries and Indian Oil Corp could also buy Venezuelan oil if terms are attractive. Overall, a resumption of Venezuelan oil exports could have significant implications for the global oil market.

Read more at Yahoo Finance: Analysis-Venezuelan oil would boost US refiners, hurt Canadian producers