6 June | Oil

US companies seek alternative heavy oil sources due to Chevron’s reduced role in Venezuela

US companies seek alternative heavy oil sources due to Chevron’s reduced role in Venezuela

US refineries along the Gulf Coast are facing shortages of heavy crude oil after Washington imposed restrictions on Chevron’s operations in Venezuela. The move has forced the companies to seek alternative supply sources, Energy News Beat reports.

The website notes that heavy crude serves as a vital feedstock for diesel, asphalt and other petroleum products. The US imports approximately 2.5–3 million barrels per day (bpd) of this crude, which refiners typically blend with lighter grades to optimize processing.

Previously, Venezuela supplied about 220,000 barrels per day of heavy oil to the US. But with Chevron's operating license now revoked, the market is facing a daily supply gap of 200,000-300,000 bpd, according to Energy News Beat.

The US primarily sources its heavy crude from Canada, Mexico, Colombia and Ecuador, but each of them faces supply constraints. Canada struggles with pipeline capacity limitations, while Mexico is cutting exports due to rising domestic demand. Meanwhile, Colombia and Ecuador are lowering production, the website reports.

Anton Volkov MarketCheese
Period: 30.07.2025 Expectation: 10700 pips
ETHUSD rebounds toward $3,740 after correction
Yesterday at 11:47 AM 36
Period: 29.08.2025 Expectation: 3000 pips
Anticipating inevitable SPX correction
Yesterday at 11:40 AM 32
Period: 08.08.2025 Expectation: 300 pips
Gas prices poised for 2025 lows as critical support at $3 nears breakdown
Yesterday at 10:24 AM 20
Period: 25.09.2025 Expectation: 50000 pips
Bitcoin ready to reverse downward
Yesterday at 09:28 AM 28
Period: 30.07.2025 Expectation: 1500 pips
USDJPY dips to 144.965 on breakthrough trade deal
Yesterday at 08:01 AM 17
Period: 29.07.2025 Expectation: 900 pips
EURUSD forms a new upside wave toward 1.183
23 July 2025 66
Go to forecasts