US independent refiner PBF Energy is benefiting from rising medium and heavy crude supplies and expects the trend to continue as more Venezuelan crude comes to the market, the company said today.
Sour crude differentials began widening in the middle of 2025 which carried through the fourth quarter with growing supplies, including from the Opec+ group of countries, chief executive Matthew Lucey said in an earnings call.
The recent development of more Venezuelan crude entering the open market is an additional tailwind for US refiners and PBF in particular as the company can run up to 60pc of its system with heavy sour crude, he said.
More Venezuelan heavy sour is hitting the global market after trading firms Trafigura and Vitol were approved by the US government to market unsanctioned Venezuelan oil following the US capture of former Venezuelan president Nicolas Maduro on 3 January.
More recently, the US lifted sanctions on Venezuela's oil exports, with caveats prohibiting sales to Cuba, business deals involving many Chinese companies and oil-for-debt arrangements.
"The impact to the US refining system with those sanctions being lifted is instantaneous," Lucey said, while also acknowledging that "there will be many, many years of investment and potential growth in Venezuela."
Fellow US independent refiner Valero said last month that it has ramped up purchases of Venezuelan crude and expects it to be a major heavy feedstock this quarter.
Two other large US refiners, Phillips 66 and Marathon Petroleum, said last week that they had recently purchased Venezuelan crude.
US major Chevron, which has been operating in Venezuela with state-owned PdV under a special waiver from US sanctions, is also planning to run more Venezuelan crude in its US refineries.
Chevron currently produces about 250,000 b/d in Venezuela through its joint ventures, but the company has said that it could grow this by 50pc over the next 18-24 months.
