Venezuela’s heavy crude isn’t a great fit for the US emergency reserve. It could still help refill it.

The US could switch dense Venezuelan crude for American lipid to thief refill the US emergency reserve, Energy Secretary Chris Wright said Wednesday.

"We'll switch you a tube of dense crude for a tube of ray aliases mean United States crude," Wright told CNBC successful Caracas.

The switch could get astir a mismatch, arsenic immoderate of Venezuela's cardinal dense crude grades aren't suitable for the Strategic Petroleum Reserve.

Wright's comments came aft President Donald Trump said Sunday that he planned to "fill up" the US strategical reserves pinch Venezuelan oil. The White House has besides said lipid secured done a sweeping caller US-Venezuela statement could thief replenish the SPR.

"It doesn't mean that precisely these barrels spell successful there," Wright said.

Venezuela's dense crude could alternatively spell to US refiners, while lighter American barrels obtained done a switch could participate the reserve. Wright said US refineries built successful the 1960s and 1970s were designed astir Venezuelan crude.

Under the caller agreement, North American Blue Energy Partners received 100-year concessions covering 17 Venezuelan lipid fields. The US authorities received a 35% equity liking successful the company's firm parent. The State Department gained the correct to bargain 20% of the lipid from NABEP-operated fields astatine the costs of production.

More Venezuelan dense crude could besides summation competition for Canada, a awesome supplier of dense lipid to US refineries.

"Well, of course. All crude is title pinch each different crude," Wright said erstwhile asked whether Venezuelan accumulation would compete pinch Canadian and different North American oil.

Wright said accrued title would push prices lower, which he expects to boost consumption.

"If you person little lipid prices, you person faster request growth," he said.