Venezuela Regains Relevance in the Oil Market Amidst US-Israel War Against Iran
With production far below the 3 million barrels per day reached in the 90s, Venezuela is once again becoming relevant in the oil market amidst the US-Israel war against Iran, which is jeopardizing global supply due to threats to ship traffic through the Strait of Hormuz, through which 20% of the world's crude passes.
TL;DR
- Venezuela's oil relevance has increased due to the war between the US and Israel against Iran, which threatens global supply.
- Improved communication between Caracas and Washington, following the capture of Nicolás Maduro, has facilitated Venezuelan crude imports to the US.
- The Middle East conflict has led to increased revenue for Venezuela as it resumes oil shipments to the US.
- Venezuela's production in 2025 averaged 1,081,000 barrels per day, the highest in seven years.
- Global oil prices (Brent and WTI) have risen significantly due to the conflict.
- Venezuela's oil industry faces challenges in increasing production due to lack of maintenance and investment in infrastructure.
- Previously, 80% of Venezuelan oil was destined for China, sold at a discount, but now most shipments go to the US.
- Venezuela is considered a secure supplier due to its proximity to the US and safer shipping routes compared to the Middle East.
- Restoring Venezuela's oil sector could return it to its historic role as a crucial global supplier.