Who is the biggest winner from Venezuelan oil?

Following the capture of Nicolas Maduro, investors have began debating which drillers stand to yield the greatest benefit from increased access to Venezuelan oil reserves.  As the Trump administration begins to further ease sanctions, increasing amounts of refiners will begin to see value from the heavy crude extracted from Venezuela. Despite boasting the strongest oil…

Following the capture of Nicolas Maduro, investors have began debating which drillers stand to yield the greatest benefit from increased access to Venezuelan oil reserves. 

As the Trump administration begins to further ease sanctions, increasing amounts of refiners will begin to see value from the heavy crude extracted from Venezuela. Despite boasting the strongest oil reserve in the world, Venezuelan crude is much more viscous than conventional crude. It is therefore the refiners that are poised to capture immediate profits with lower risk.

The complexities and challenges associated with refinement gives MPC (Marathon Petroleum) an edge. Located in Loisiana’s Gulf Coast, the company will be a strong recipient of increased Venezeulan oil imports. As the US ramps up deal making of Venezuelan barrels globally, MPC stands at a position to absorb increase import volumes with minimal risks. Stock price, however, has swinging quite wildly lately.

Image courtesy of TradingView

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