Venezuela’s Oil Production Faces Shutdown Amid Tanker Blockade
According to the Economic Desk of Webangah News Agency, Venezuela’s oil industry is facing a potential crisis as its largest oil storage and tanker hubs are expected to reach full capacity within ten days, leading to significant production cuts. Approximately 11 million barrels of Venezuelan crude oil are currently stranded at sea due to escalating tensions with the United States.
The situation is compounded by declining crude oil production. The International Energy Agency reported that Venezuela’s oil supply in November was estimated at 860,000 barrels per day, a decrease from 1.01 million barrels per day in October. Further reductions are anticipated in December following increased U.S. actions in the Caribbean, with reports indicating that the U.S. is prepared to seize additional tankers carrying Venezuelan crude after impounding one earlier this month.
The impact of tanker blockades on the supply of Russian naphtha, crucial for diluting Venezuela’s heavy crude oil, is exacerbating the crisis. While one tanker carrying 32,000 tons of Russian naphtha was en route to Venezuela last week, it rerouted toward Europe with its cargo still on board, according to data from financial firm LSEG.
OilPrice.com estimates that Venezuela could lose up to 500,000 barrels per day of oil production in the worst-case scenario due to these constraints and a shortage of necessary diluents, hindering the flow of heavy crude oil for export.
