- Undercut Venezuela’s economic power and political leverage.
- Redirect oil flows into U.S. refineries.
- Use Venezuelan crude as a strategic tool to dampen global oil prices, and weaken its adversaries.
Why This Matters: Oil Prices and U.S. Consumers
The logical question for American motorists — who have endured volatile fuel prices for years — is whether this newly acquired oil will translate into cheaper gasoline at the pump.
Experts caution that the relationship between crude supply and retail gasoline prices is complex and not immediate. Gasoline prices are driven by a web of factors, including refining capacity, distribution costs, futures markets, geopolitical risk premia, and seasonal demand shifts.
A notable gasoline price analyst recently told industry media that changes in Venezuela’s situation might not meaningfully impact local U.S. oil markets in the near term due to these structural factors.
Moreover, Venezuelan crude is heavy and sulfurous, meaning it requires specialized refining. U.S. Gulf Coast refineries are capable of processing heavy crude, but converting Venezuela’s stock into usable gasoline and diesel will still take time — often months — and investment in infrastructure.
