U.S. oil and petrochemicals makers are warning President Donald Trump that proposed oil sanctions against Venezuela could hurt domestic companies and consumers.
In a letter sent to Trump and published in La Tabla.com, the head of the American Fuel and Petrochemical Manufacturers, Chet Thompson, wrote that the measures would not help to solve the problems in the South American nation.
Venezuela now sells more than 700,000 barrels of oil a day to the U.S. out of a total production of roughly two million barrels a day, or just over 2 percent of world production.
The document indicates that some 20 U.S. refineries are supplied with heavy Venezuelan crude, for which they have made substantial processing adjustments.
It says there are practically no other sources of supply for this type of oil.
So a suspension of purchases to Venezuela, would destabilize the world market for hydrocarbons.
The manufacturers estimate that the search for additional quotas of heavy crude would be extremely complicated and could increase costs, resulting in higher prices for consumers.
The two countries’ economies are tightly bound by the oil that Venezuela sells to the United States: It accounts for roughly 10 percent of the oil imported by the US . . .