Trump's Venezuela Oil Deal: A Refining Reality Check

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President Donald Trump's recent announcement of a deal giving the U.S. access to billions of barrels of Venezuelan oil reserves has sparked optimism about gas prices coming down despite the Iran war's energy shock. However, GasBuddy analyst Patrick De Haan warned it may not be so simple.

The Refining Capacity Question

In a post on X on Monday, De Haan said that refiners in the U.S. are "running at the closest pace to capacity in years." He added that there was no "more room for U.S. refiners to process more oil," be it oil from Venezuela or anywhere else. "Refiners have been operating over 95% all summer long," the analyst said.

De Haan also responded to a user in the thread of the post who asked whether Venezuelan crude oil needed specialized refining practices. "Yes, processing heavy oil (also high sulfur) does require more refinery complexity," the analyst said in his response.

De Haan had earlier questioned the move to acquire Venezuelan oil, saying how the U.S. could lay claim to another country's natural resources. The analyst also said that the move would require billions of dollars worth of investments to bear fruit and translate to lower gas prices in the U.S.

According to data from the American Automobile Association (AAA), the national average price for a gallon of gasoline was $4.0807 on Monday.

Charlie Bilello Slams Trump

Investment firm Creative Planning's Chief Marketing Strategist Charlie Bilello slammed Trump as gas prices remain elevated in the U.S. amid rising tensions with Iran. Bilello said that the national average gas price remained above $4/gallon, which was a "painful" new record for American consumers.

It's also worth considering that Trump's Environmental Protection Agency (EPA) had earlier issued an emergency fuel waiver to allow oil producers to shift to winter blends of gasoline earlier than usual in a bid to decrease fuel costs and provide relief.

Stock Market News

Trump's Venezuela Oil Deal: A Refining Reality Check

Get Market Alerts

The Refining Capacity Question

Charlie Bilello Slams Trump

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