[Eric in the Ozarks]

It won't matter if they do. Its a world market for oil, so if they push their bbls toward Europe or via the Canal to China, it'll just bump bbls out of the Europe or Asia market to somewhere else.
Chavez will have to take less for his oil if he follows through. Freight to the US is the cheapest he's got.

[RedWhiteBlue]

Not only that, Venezuelan crude is heavy (full of sulphur). Not every refinery can process it, so it won't be suitable for just anyone. I saw here a couple of weeks ago that the power outages in Cuba were caused by processing the subsidized (free) Venezeulan crude through Cuban facilities that just weren't tooled to handle it.

The main reason PDVSA bought Citgo in the first place was that Citgo's refineries here in the US could process the heavy crude and it gave Venezuela a ready customer for their output. I guess they are going to cut off their own refineries in the US?