Despite a persistent decline in crude oil production, Venezuela has seen its exports of crude to its biggest market, the United States, climb since February this year. In fact, between February and June, Venezuelan oil exports to the Gulf Coast refineries increased by an impressive 43 percent, according to U.S. customs data cited by S&P Platts. What is happening? It seems that market logic is overriding other factors. The recovery in Venezuelan exports is confined to Gulf Coast refineries, analysts note. These are equipped to process heavier grades, and their choice of supplier is limited. Mexico’s oil production is stagnating at the moment, despite ambitious plans of the new administration to raise it from the current 1.9 million bpd to 2.5 million bpd. Canada’s heavy crude production is growing, but pipeline capacity is not, so it’s difficult and costly to get more heavy crude to Gulf refineries. Venezuelan heavy […]