• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 7 mins China has invested btw $30 - $40 Billon in Canadian Oil Sands. Trump should put 10% tariffs on all Chinese oil exported into or thru U.S. in which Chinese companies have invested .
  • 15 hours Iran Is Winning Big In The Middle East
  • 2 hours Tit For Tat: China Strikes Back In Trade Dispute With U.S. With New Tariffs
  • 4 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 2 hours It's Not the Job of the Government to Dictate Where Businesses Should Go
  • 17 hours Not The Onion: Vivienne Westwood Says Greta Thunberg Should Run the World
  • 16 hours IS ANOTHER MIDDLE EAST WAR REQUIRED TO BOLSTER THE OIL PRICE
  • 1 day OPEC will consider all options. What options do they have ?
  • 1 day Trump cancels Denmark visit amid spat over sale of Greenland
  • 13 hours Strong, the Strongest: Audi To Join Mercedes, BMW Development Alliance
  • 14 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 1 day Long Range Attack On Saudi Oil Field Ends War On Yemen
  • 9 hours Recession Jitters Are Rising. Is There Reason To Worry?
OPEC Turns Bearish On Oil

OPEC Turns Bearish On Oil

In its latest monthly report,…

IEA: Venezuela’s Oil Production Is In Free Fall

Maracaibo basin Venezuela

While analysts were busy calculating how much Iranian oil will come off the market with the U.S. sanctions and whether Saudi Arabia and Russia are offsetting losses, crude oil production in Venezuela “is in free fall” and could soon sink to below 1 million bpd, Fatih Birol, Executive Director of the International Energy Agency (IEA), told Reuters on Tuesday.

“Venezuela production is in a free-fall and we expect that soon it may go to even below 1 million barrels per day,” Reuters quoted Birol as saying on the sidelines of an oil conference in South Africa.

IEA’s head also expressed hope that oil prices won’t rise again this year from the current level of around $73 a barrel Brent Crude.

“I hope that prices do not rise again because this will not really be good news for the global economy which is very fragile,” Birol told Reuters, reiterating his warning from last week that high oil prices had already started to hurt oil demand.

Regarding Venezuela, analysts started to warn in the middle of this year that Venezuelan crude oil production is likely heading for a plunge to below the psychological threshold of just 1 million bpd as early as by the end of this year.

Venezuela’s oil production has been in free fall for two years. Outside of war-induced outages, Venezuela is suffering the worst loss of oil production in history amid an unprecedented economic collapse, years of mismanagement and underinvestment in the oil industry, an aggravating humanitarian crisis, and a leader who is hell-bent on clinging to power. Venezuela’s inflation will surge to one million percent by the end of this year as the country with the world’s biggest oil reserves remains stuck in a profound economic and social crisis, the International Monetary Fund (IMF) predicts.

As per OPEC’s secondary sources, Venezuela’s oil production plunged by 42,000 bpd from August to average just 1.197 million bpd in September. This compares to an average 2.154 million bpd for 2016 and 1.911 million bpd for 2017. OPEC’s production figures for October are due out on November 13 with the next Monthly Oil Market Report.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play