Venezuelan oil production could return to pre-blockade levels by mid-2026, says US EIA
Expanded U.S. licenses for Venezuela-related operations are expected to restore the South American nation's oil production by mid-2026 to levels seen before a U.S. naval blockade in December, the U.S. Energy Information Administration (EIA) said on Tuesday. By Reuters The Venezuelan state oil company PDVSA [...]
TL;DR
- Expanded U.S. licenses are expected to restore Venezuela's oil output to pre-blockade levels by mid-2026.
- The U.S. naval blockade had forced PDVSA to cut production significantly.
- Recent authorizations for traders like Vitol and Trafigura, and Chevron, have helped clear excess inventories and increase output.
- Global oil output growth is predicted to outpace demand through 2027, potentially leading to inventory build-up and price pressure.
- Brent crude is forecasted to average $57.69 this year and fall to $53 next year.
- U.S. oil production is projected to reach a record 13.60 million barrels per day this year.