Repsol's Chief Executive, Josu Jon Imaz, stated that a potential increase in Venezuelan oil exports will significantly impact crude markets. He argued this development would support the refining margin premium Repsol has achieved.

Impact of Venezuelan Heavy Crude

Imaz emphasized that Venezuela's increased production and exports would "change the game." The key factor is the expected rise in the supply of heavy sour crude oil in the Atlantic basin. This type of crude is harder to process and requires specific refinery configurations, such as those operated by Repsol in Spain and by many refineries in the US Gulf Coast.

Benefits for Refining Operations

The increased availability of heavy crude would provide two main advantages for Repsol. First, it would allow for a higher utilization rate of the company's specialized coker units. Second, the higher supply would drive down prices and increase discounts available for purchasing heavy crude. Imaz directly linked these factors to the sustainability of the refining premium, stating, "That is very important for our system, and it's very important for the premium we could capture."

Strategic and Financial Context

Concurrently, Repsol announced its aim to increase its own oil and gas production in Venezuela. The company reported a 10% year-on-year increase in adjusted net income for the fourth quarter of 2025, reaching €705 million. Analysis from Bernstein Research identified strong refining performance as a key driver behind these better-than-expected earnings.