Analysts: The situation in Venezuela affects OPEC+ decisions
Sputnik, Moscow, January 7 - Independent energy expert Rodionov told Sputnik that the situation in Venezuela and increased oil production there will push OPEC+ to continue abandoning production cuts.
Rodionov said that investments by American oil companies will drive increased production in Venezuela, strengthening the overall trend of production increases in South American countries.
Rodionov said, "This will push OPEC+ members to continue increasing quotas, and the quotas for 2026 will also gradually increase, possibly also in 2027. Most importantly, increasing quotas will be irreversible, meaning that the situation in 2020 will not be repeated, when OPEC+ members simply tore up the deal and sat down to negotiate a new one. That won't happen now."
The "Group of Eight" within OPEC+ voluntarily cut production by 2.2 million barrels per day from April, in addition to existing quotas, and exited early in September, then gradually abandoned the restriction of cutting another 1.65 million barrels per day starting in October. Therefore, in the fourth quarter, each country increased production by 137,000 barrels per day every month, without counting the compensation plan. It has been planned to suspend production increases between January and March 2026.
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Original: toutiao.com/article/1853641215126531/
Statement: This article represents the views of the author.