Return of Venezuelan crude could cut US fuel oil imports

U.S. demand for imported fuel oil is expected to decline as refiners increase purchases of Venezuelan crude, following the recent political changes in Venezuela. This shift is anticipated to allow U.S. refiners, particularly on the Gulf Coast, to produce more fuel oil domestically, reducing the need for imports. Analysts predict that U.S. Gulf Coast refiners could absorb an additional 600,000 barrels per day of Venezuelan crude, impacting global fuel oil prices and potentially decreasing imports from Iraq. The European fuel oil market may also feel the effects of this increased supply.