The Trump administration is exploring a plan to swap heavy Venezuelan crude for US medium sour oil as part of efforts to replenish the Strategic Petroleum Reserve, according to sources familiar with the discussions.
Under the proposal, Venezuelan oil would be moved into storage tanks at the Louisiana Offshore Oil Port, where it could later be shipped to refineries. In return, participating companies would supply US-produced medium sour crude that can be sent directly into SPR caverns.
Officials at the US Department of Energy are weighing the option as a logistical solution to speed up reserve refilling, sources said. Similar oil exchanges have been used in the past, typically during supply disruptions, allowing refiners to borrow crude and return it later with an added premium.
The Department of Energy has not yet commented publicly on the discussions. The plan comes as President Donald Trump pushes to rebuild emergency oil stockpiles following earlier drawdowns.
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