Venezuela could be the next that tips the scales of oil prices in a more favorable direction, at least for producing countries. That’s according to one analyst, who told CNBC Venezuela’s oil output is going down, down, down this year.
This is true and it’s not news, either. Digging into the topic, I found this from March, no less. Venezuela’s oil output is already declining but, apparently, it’s not declining fast enough to have its very own supportive effect on prices.
What I found particularly amusing was the note that “For the record, however, that is still above the output of 1.972 million barrels a day it’s supposed to target as a part of the OPEC-led production cut agreement that kicked in at the start of the year.”
If OPEC’s lucky, Venezuela will lose another 200,000 to 300,000 bpd by the end of the year, so that will be okay. Although there are Libya and Nigeria to consider as well…