02/ 23 Closing Prices / revised 02/23/2024 21:59  GMT 02/22   OPEC Basket  82.90 + 0.91  | 02/23    Mexico Basket (MME)   $72. 22 -2.05 | 01/13    Venezuela Basket (Merey)  $66.50  +1.30   | 02/23     NYMEX WTI Texas Intermediate April  CLJ24   $76.49 -2.12 | 02/23    ICE Brent April BRNJ24     $81.62 -2.05 | 02/23     NYMEX Gasoline March  RBH24   $2.28  -2.5% |  02/23    NYMEX  Heating Oil March  HOH24   $2.69   -2.3%   | 02/23    Natural Gas March NGH24    $1.60  -7.5% | 02/23    Active U.S. Rig Count (Oil & Gas)    626   +5  | 02/23    USD/MXN Mexican Peso  17.1166  (data live  | 02/23     EUR/USD    1.0821  (data live)  | 02/23    US/Bs. (Bolivar)   $36.06980000  ( data BCV)  

Venezuelan Oil Output to Fall 30% Under Renewed US Sanctions – Bloomberg

The nation’s output stood at 876,000 barrels a day in December, the highest since the US imposed sweeping sanctions in early 2019. Photographer: Gaby Oraa/Bloomberg
Oil production could fall 30% to 600,000 barrels a day. Biden administration says sanction relief may expire April 1. The nation’s output stood at 876,000 barrels a day in December, the highest since the US imposed sweeping sanctions in early 2019. (Gaby Oraa/Bloomberg)

Lucia Kassai, Bloomberg

HOUSTON
EnergiesNet.com 01 31 2024

Venezuelan oil production at a four-year high is expected to decline quickly if the US follows through on threats to reinstate sanctions on the nation.

The Biden administration on Tuesday said sanctions relief to Venezuela’s oil and gas sector will be allowed to expire on April 18, unless the government holds free and fair presidential elections. 

While it’s unclear whether the US would restore a total ban or allow oil major Chevron Corp to hold limited operations in Venezuela, production could nevertheless drop to 600,000 or 700,000 barrels a day in a matter of months, according to said Fernando Ferreira, director of geopolitical risk at Rapidan Energy Advisors.

The nation’s output stood at 876,000 barrels a day in December, the highest since the US imposed sweeping sanctions against the country and state-owned oil company Petroleos de Venezuela SA in early 2019. 

“It’s too premature to estimate what’s going to happen, but if I were a buyer of Venezuelan crude I’d stock up before April 18,” said Ferreira.

Since the broad easing of sanctions in 2022, Chevron has been ramping up production and selling Venezuela oil to US refiners including Valero Energy Corp, PBF Energy and Phillips 66.

The relief allowed Venezuela to resume oil swaps and direct sales to refiners in India and Europe. It also allowed the company to import much-needed diluents from the US. Imports of diluents, used to boost oil production, rose to four cargoes in January, the highest in more than three years. 

The reimposing of sanctions could spur the return of little-known companies that, in the past, have concocted elaborate schemes to help Venezuela keep exporting oil, the source of more than 90% of the country’s revenue. 

bloomberg.com 01 30 2024

Share this news

Support EnergiesNet.com

By Elio Ohep · Launched in 1999 under Petroleumworld.com

Information & News on Latin America’s Energy, Oil, Gas, Renewables, Climate, Technology, Politics and Social issues

Contact : editor@petroleuworld.com


CopyRight©1999-2021, EnergiesNet.com™  / Elio Ohep – All rights reserved
 

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission fromPetroleumworld or the copyright owner of the material.

 
 
Scroll to Top