Citigroup has released a research report stating that as the situation in Venezuela continues to evolve, the United States is accelerating efforts to facilitate the flow of Venezuelan oil into the market to alleviate price pressures. The primary measure appears to involve diverting 30 to 50 million barrels of oil equivalent from Venezuela to the United States, which could subsequently redirect other heavy crude oils, such as Canadian crude, toward Asian markets. While some oil supply may increase relatively quickly, other geopolitical risks persist, potentially providing support to keep oil prices within a range of $55 to $65 per barrel. Meanwhile, regarding U.S. petroleum inventories, gasoline and diesel stocks continue to rise, returning to more neutral levels; conversely, U.S. crude inventories are declining due to persistently strong refinery operations. However, inventories at the Cushing, Oklahoma hub continue to increase; its stockpile data serves as a crucial indicator for measuring U.S. crude supply and demand, as well as oil prices.
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