Thu. Apr 25th, 2019

Crude oil production in Venezuela sinks to 732,000 barrels per day

Crude oil production in Venezuela sinks to 732,000 barrels per day


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MadridUpdated:

Venezuela continues to suffer serious problems to maintain its oil industry, the most important source of income for the country. Last month, its crude production fell to 732,000 barrels per day, 28% less than in February. The figure contrasts with the 1.354 million barrels of average of 2018 and the 1.911 million of 2017.

Venezuela A few years ago, it maintained a production above 3 million barrelsiles, being one of the most outstanding countries of OPEC. Currently, of the 14 states that make up this cartel, its production is only ahead of Ecuador, Congo, Gabon and Equatorial Guinea.

Precisely, this cut of the production of Venezuela, as well as those of Saudi Arabia and Iraq have reduced in only one month the supply of OPEC crude in more than half a million barrels daily, almost 0.5% of the world demand, according to the last report of that organization.

This anomalous situation is what explains the increase in oil prices which, in the case of the Brent type, is close to 72 dollars a barrel, its highest level in five months.

Saudi Arabia, the largest producer of the cartel and the world's largest crude oil exporter, cut its taps in March and withdrew 324,000 barrels from the market. Its production was 9.79 million barrelsiles, 520,000 below the established national quota.

Also Iraq and Iran reduced their extractions, 126,000 barrels and 28,000 barrels, respectively, while those of Libya (196,000), Congo (23,000) and Nigeria (11,000) increased.

In total, the reduction registered last month has led OPEC to pump 443,000 barrels per day below the current total quota (25.93 million, without Venezuela, Iran and Libya).

OPEC experts acknowledge that these cuts, together with the uncertainty created over future supplies from various regions, have contributed to making the so-called "black gold" more expensive.

However, the OPEC considers that the absence of barrels from its member countries will be more than compensated by the rival production, which would increase this year by 2.18 million, to total 64.54 million, mainly thanks to United States, where an increase of 11.22% is expected, up to 18.53 million.

Also Brazil, the United Kingdom, Australia and Ghana will open the spigots, while Mexico, Kazakhstan, Norway, Indonesia and Vietnam will record declines in their deposits, reports Efe.

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