Supplying countries are mimicking Middle Eastern oil producers’ long-held strategy of investing in Asia to secure a captive market. Petróleos de Venezuela SA is setting up a refinery in Jieyang in southern China to process 400,000 barrels a day beginning in 2017, in a joint venture with China National Petroleum Corp. It will likely use Venezuelan heavy crude oil as its main feedstock, says Richard Gorry, a consultant at JBC Energy.

The Wall Street Journal