The potential resumption of US sanctions against Venezuela is giving a boost to Colombian oil of the same quality.
Heavy sour Castilla crude oil for delivery in April is being offered at a discount of around $9 per barrel to benchmark ICE Brent prices, stronger levels compared with the previous month, according to people with knowledge of the situation who asked not to be named while discussing non-public information.
The commissioning of the Dos Bocas refinery in Mexico and civil unrest in Colombia are also helping to support prices, the people said. The new refinery operated by Petroleos Mexicanos is expected to start producing fuels this week and will reach full tilt by the end of March, tightening supplies of heavy sour oil like the one Colombia exports.