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Venezuela weighs leaving OPEC, with U.S. talks in the mix
Venezuela produced about 1.117 million barrels per day in July and is currently exempt from OPEC production quotas due to years of sanctions and underinvestment.
Venezuela, a founding member of OPEC in 1960, is weighing whether to exit the oil cartel, according to OilPrice, which cited Bloomberg and people familiar with discussions that have included U.S. officials.
The article says Venezuela produced about 1.117 million barrels per day in July based on OPEC’s secondary sources, and that its output has been weakened by years of sanctions, underinvestment, and broader economic turmoil. Venezuela is also currently exempt from OPEC production quotas.
OilPrice adds that Venezuela’s potential departure would come shortly after the United Arab Emirates quit OPEC, following years of frustration with production restrictions, and that Iraq could be next. Iraq has warned it may reconsider membership if an ongoing capacity review does not raise its production quota.
Together, the UAE, Venezuela, and Iraq account for more than 7 million barrels per day of production capacity, or about 32% of OPEC members’ capacity, according to OPEC’s latest Monthly Oil Market Report, with just Venezuela and the UAE accounting for 4.9 million barrels per day. The article also notes U.S. and Venezuelan officials are currently discussing greater oil cooperation, though no final decision has been made.