U.S. refiners are re-evaluating their crude sourcing strategies following the Trump administration's decision to allow Chevron to resume and expand operations in Venezuela, signaling a potential return of heavy crude flows to the Gulf Coast.

The Trump administration's decision to let Chevron (NYSE:CVX) resume producing and exporting Venezuelan crude is set to increase crude supplies for U.S. refiners by more than 200K bbl/day, Bloomberg reported Friday.

Venezuela might well be sanctioned by the U.S., but President Trump is making an exception for its oil. Per the WSJ, U.S. oil giant Chevron ( CVX) will soon be able to extract oil in the South American country. Specifics on the deal remained unclear. Its stock is 1.45% higher on the news.

The Trump administration is easing oil sanctions on Venezuela by authorizing Chevron to resume operations under strict conditions, marking a major policy shift with geopolitical implications.

The U.S. government is evaluating the possibility of authorizing Chevron and potentially other European partners of PDVSA to operate in Venezuela, marking a potential policy shift. This comes as the U.

An arbitration court in Paris ruled that Chevron could proceed with its $53 billion acquisition of Hess, which had been on hold since 2023 as ExxonMobil contested the deal.

The acquisition of Hess—and its stake in a generational oil find—helps clear up lingering doubts about Chevron’s growth prospects.

As inflation surges under President Trump’s renewed sanctions, Venezuelan authorities are trying to keep a lid on the country’s worsening financial situation.