Venezuela's Oil Output Crash Is Costly for U.S. Refiners

  • Venezuelan production has plummetted, cutting into exports
  • The price gap between WTI and Venezuelan oil is shrinking

Photographer: Diego Giudice/Bloomberg

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U.S. Gulf Coast refiners are paying the price for shrinking Venezuelan crude output.

U.S. production is at an all-time high, while output from the Latin American nation, despite a modest increaseBloomberg Terminal in January, is in decline. As a result, U.S. crude’s typical premium to heavy Venezuelan oil shrank to as small as 31 cents a barrel Friday, the narrowest since October.