Oil sales from Venezuela to continue indefinitely, sanctions will be reduced: Sources

Summary

Brian Sullivan reports from the Goldman Sachs energy conference that Venezuela will sell an initial 30-50 million barrels of oil to the U.S., with sales to the U.S. and Western nations continuing indefinitely. He says the U.S. will selectively roll back Venezuelan sanctions, and previously sanctioned crude that would have gone to China will be rerouted to Western refiners. The hosts discuss the implications for crude prices and refiners that can process heavy sour crude, naming Valero, Marathon Petroleum, and Phillips 66. Brian notes no price has been specified and says he will interview the Energy Secretary later.

• Brian Sullivan reports Venezuela oil sales to the U.S. and Western nations will continue indefinitely, starting with 30-50 million barrels.
• The U.S. is selectively rolling back Venezuela sanctions to enable crude and oil product sales to global markets.
• The barrels are previously sanctioned oil that would have gone to China, now rerouted to U.S. and Western refiners.
• Hosts flag Brent slightly lower and discuss refiners able to process heavy sour crude.
• Valero, Marathon Petroleum, and Phillips 66 are mentioned as potential beneficiaries; Citgo and Elliott's Phillips 66 proxy fight are also discussed.
• Brian says no price details are known and will interview the Energy Secretary later.