US eyes on Venezuelan heavy crude: Refining flows reset, China marginalized

The recent US assault on Venezuela and attempt to control its oil industry should be understood as a refining and flow reallocation event rather than a classic supply shock. The lasting impact lies in the re-optimization of the US Gulf Coast refining system with a limited amount of heavy crude processing, the intensification of competition in heavy crude markets, and the strategic marginalization of China within the Venezuelan oil ecosystem.