Updated

Updated · Fox News · Oct 29

Trump Announces 1 Million Venezuelan Oil Barrels Reach Texas as U.S. Eyes 65 Billion More

Updated

Updated · Fox News · Oct 29

Trump Announces 1 Million Venezuelan Oil Barrels Reach Texas as U.S. Eyes 65 Billion More

Q: Will Venezuelan oil refined in Texas meaningfully lower gas prices, or are global supply pressures still too strong?

Not in the near term. A million barrels of Venezuelan crude refined in Texas can add some feedstock to Gulf Coast refineries, but by itself it is too small to meaningfully change U.S. pump prices in a market this large and globally linked. The main reason is scale. The U.S. consumes roughly 9 million barrels a day of gasoline alone, and crude and fuel prices are still being driven primarily by global factors. Recent AAA and market data show crude hovering around the mid-$90s to above $100 a barrel at times, with instability tied to the Strait of Hormuz and broader Middle East disruptions keeping oil expensive. When crude stays high, retail gasoline usually does too. Refining is another constraint. U.S. refineries, especially on the Gulf Coast, are already running at very high utilization—around 95% in recent periods. Gasoline inventories have been below seasonal norms, and analysts have noted tight refinery conditions, strong margins, and limited spare capacity. That means extra crude does not automatically translate into much more gasoline, especially quickly. Venezuelan heavy crude can fit some Texas refineries well, so over time larger, sustained flows could modestly improve supply and help regionally. But analysts cited in the reporting say production increases in Venezuela will take time because of aging infrastructure and bottlenecks. In the short run, any benefit is likely marginal compared with the much bigger force of global crude prices and tight fuel markets.

3 articles · Updated · Fox News · Oct 29

The first 1 million barrels of Venezuelan oil secured under Trump’s new agreement have arrived in Texas, where the crude will be refined as the administration tries to ease fuel costs before the midterms.
Trump tied the shipment to his push to lower pump prices, which stood at about $4.25 a gallon Wednesday—nearly 40% above a year earlier, according to AAA.
The White House said the broader deal would give the United States majority control over roughly 65 billion barrels of proven Venezuelan reserves and expand supply without cost to taxpayers.
At rallies in Corpus Christi and Lubbock, Trump supporters said higher prices were hurting but not weakening their backing, with several framing the election as a fight over socialism, taxes and Texas energy jobs.