Venezuela Ups Domestic Oil Refining, Hurting Crude Exports

Venezuela's PDVSA is using more of its domestic output of medium and light crude oil grades for refining, reducing their availability as diluents for its heavy export grades, Reuters has reported, citing sources familiar with the matter. The increase in local refining has been prompted by fuel supply shortages that have led to rationing, queues, and additional disgruntlement among the Venezuelan population.

"They need to distribute the production between the refineries and blending in the [Orinoco] Belt," one of the Reuters sources said. "There…