US Needs Venezuela's Heavy Oil: The Surprising Reason Behind the Paradox

• US, despite being the largest oil producer, relies on Venezuela's unique heavy crude for its specialized refineries.
• Venezuela holds the world's largest oil reserves (303 billion barrels) of extra heavy crude, crucial for global supply.
• 70% of US Gulf Coast refineries are optimized to process heavy crude, which the US does not produce sufficiently.
• US sanctions on PDVSA since 2019, political instability, and nationalization have severely impacted Venezuela's oil production.
• Tightening sanctions on Venezuelan heavy crude could lead to higher diesel and fuel oil prices globally.

Why It Matters: US refineries' need for Venezuela's specific heavy crude drives geopolitical interest despite sanctions.