Venezuela’s Oil Refineries Go from Bad to Worse Amid Supply Cuts

Owner of the world’s largest oil reserves, Venezuela can’t feed its people, or its refineries.

The nation’s five refineries, once the crown jewel of Petroleos de Venezuela SA, are working intermittently as equipment breaks down and the plants are starved of oil to process. They are operating at less than one-third capacity compared with an average of 40 percent last year, according to data compiled by Bloomberg. Meanwhile, refineries in the U.S. are humming along at over 90 percent.

Plagued by hyperinflation and social unrest, the OPEC member is producing oil at the lowest level since the ...