Citgo to stop selling (most) gasoline in US

Citgo to stop selling gas at U.S. stations

I notice that the article is about gas, but then gives statistics relating to overall oil supply. Anybody know what percentage of Venezuelan oil sales are non-gasoline (and if they’re currently affected by this policy)?

But is this a actually a practical policy? What is preventing “China” or “Great Britain” from buying the oil and then selling it to the US as a regular trading mechanism?

My contention is that Chavez can go ahead and specify that whomever buys his oil can’t sell it to the US, in the long run it won’t matter:

  1. People cheat
  2. Venezuelan oil will likely crowd out another source, which will then sell to the US, negating the effect

However, expect the price of gas to jump by the weekend. Hell, within 24 hours of this post.

Anyway… I think this is the right forum. Your thoughts?

Actually, upon reading closer they’re cutting production by 130,000 barrels, leaving 750,000 currently in the mix. But still:

As you noted, there will be a brief jump in prices, then everything will settle down and nothing will change, except for all the people who work for Citgo. Chavez can put all the limitations he wants on oil sales, but it won’t make a bit of difference once the oil leaves Venezuela. He is “a tale told by an idiot, full of sound and fury, signifying nothing.”

If he likes the income provided by oil he has to sell it somewhere, and since oil is a fungible resource even if he dumps it elsewhere it will still end up in the tanks of whoever is will to pay for it, i.e. the United States.

I have to wonder how much of this is ideological and how much is just a business decision. Like the article says:

So, it looks like Citgo is only going to be selling the gasoline that they refine themselves in the US, from now on.

Does anyone know, would it help to direct my gasoline purchases away from the Citgo-branded gas stations? Or does Citgo gas find its way everywhere?

Oil and gas companies routinely sell to each other. If you boycott Citgo (or any other single gas brand), you’d only be hurting the local station owners and employees.

Which is what Citgo was doing before the cuts. They could not produce enough gasoline to supply all of their stations, so they were buying the difference on the open market.