Venezuelan oil supply to Phillips 66 falls amid quality issues

2 Aug 2017   Venezuela

Venezuela’s supply of heavy crude to U.S. independent refiner Phillips 66 has dropped by more than two-thirds this year in part due to quality problems, and the company has cancelled at least one cargo in recent months, according to sources from state-run oil company PDVSA. Phillips 66 ( PSX.N ) has also asked for price discounts for other shipments of Venezuelan crude, according to the sources. Venezuela’s heavy crude supply to Phillips 66’s Sweeny refinery in Texas fell to 33,500 barrels per day (bpd) in June from 105,000 bpd in January, according to Thomson Reuters Trade Flows data. The contract between Phillips and Venezuela’s PDVSA allows a maximum supply of some 170,000 bpd. The Merey crude Phillips 66 typically receives from Venezuela has to be processed before shipping to remove its high content of salt and metals. But operational problems at Venezuela’s Orinoco Belt have changed […]

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