US refiner Phillips 66 rejected a cargo of Venezuelan crude last week for failing to meet quality standards.
Phillips 66 booked the Zuma, an Aframax with a roughly 650,000 bl capacity, in mid-July for 24 July loading in Venezuela. The ship reached Venezuela but never loaded, said a US-based shipbroker today, because Phillips 66 cancelled the cargo because the crude was off spec. The Greek-flagged Zuma departed empty from the Venezuelan port of Puerto la Cruz on 29 July, according to vessel tracking data.
This was the first time the shipbroker was aware of a tanker failing to load in Venezuela because of crude quality concerns.
Phillips 66 declined to comment.
Merey, a heavy grade of Venezuela crude, is the type of crude that typically loads at Puerto la Cruz. Light and medium crude grades such as US domestic sweet (DSW) and Venezuelan Mesa have been used to blend with Venezuelan Orinoco extra-heavy crude for export as Merey, at 16°API.
US imports of Venezuelan crude have been broadly steady this year despite political and economic uncertainty in the South American country, but there are signs of potential reductions to come.
Phillips 66, a major buyer of Venezuelan crude to its 247,000 b/d refinery in Sweeny, Texas, imported 6pc less heavy crude in the second quarter, partially as a result of uncertainty in Venezuela, the refiner said in its earnings call this week.
Venezuelan crude accounted for an average 44pc of Phillips 66 imports of heavy crude last year, according to the US Energy Information Administration (EIA).
The US imported 720,000 b/d of Venezuelan crude through May of this year, roughly flat year-on-year, according to the EIA.
