Venezuelean oil is heavier and contains a lot more sulphur than standard North Sea and American crude, making it more diffucult and expensive to refine. This and American sanctions, means the oil was fetching lower prices in the market.<\/p>

Oil standards<\/h1>
An oil standard gives a reference price in the market. Individual batches of oil are priced at a premium or discount to this, depending on quality, location and other factors.<\/p>
In the North Sea, the standard is Brent Crude, a light crude oil. In Venezuela the standard is Mereay, a heavy sour crude oil. Mereay-16, referring to 16 on the API gravity scale, is the main export grade.<\/p>

Density<\/h1>
The density of crude oil is measured using the American Petroleum Institute (API) gravity scale. The higher the API gravity, the lighter the oil. 10 degrees API is equivalent to the density of water. Light crudes have API > 30 and heavey crudes have API < 20. Lighter crudes can be refined into more valuable products such as petrol and diesel, whereas heavier crudes tend to produce more fuel oil, lubricants and bitumen. Hence lighter crudes can fetch higher prices.<\/p>

Sulphur content<\/h1>
Sulphur in oil is an undesirable impurity. It causes corrosion in refinery equipment, damages catalysts in chemical processing and leads to the formation acid rain when burned. Hence, crudes with higher sulphur content (sour) tend to fetch lower prices in the market.<\/p>

Market prices of Venezuelean oil<\/h1>
Market prices of different oil grades vary over time with supply and demand. Since 2014, the US and Europe have imposed increasingly tough sanctions on Venezuelean oil. Together witht the poor chemical quality of the oil, this means that prices have been significantly below global prices. There is no official price for Venezuelean oil, but market reports suggest that Mereay-16 has been selling at discounts of $10-15 per barrel below Brent crude in recent years, increasing to $20-25 per barrel in December 2025 according to Reuters<\/a>. After the US removed Maduro in January 2026, confiscated oil cargoes and took control over the country and its oil industry, the discounts due to sanctions are expected to reduce. The discounts due to composition will not.<\/p>

Sulphur content<\/h1> Sulphur in oil is an undesirable impurity. It causes corrosion in refinery equipment, damages catalysts in chemical processing and leads to the formation acid rain when burned. Hence, crudes with higher sulphur content (sour) tend to fetch lower prices in the market.<\/p>

Sulphur content<\/h1>
Sulphur in oil is an undesirable impurity. It causes corrosion in refinery equipment, damages catalysts in chemical processing and leads to the formation acid rain when burned. Hence, crudes with higher sulphur content (sour) tend to fetch lower prices in the market.<\/p>