“Prospects for more Venezuelan output after Maduro’s ouster could impact oil prices – GoldmanGoldman Sachs Group Inc. predicts that the prospect of increased oil production in Venezuela following the US ouster of its leader
could impact global oil prices. The recovery in production will be gradual due to infrastructure degradation, which increases the
downside risks to the oil price forecast for 2027 and beyond.
”, — write: unn.ua
DetailsOver the weekend, the US stunned the world by conducting an operation in the South American country, capturing Nicolas Maduro and stating that they were going to “govern” the country. Although Venezuela was once an oil-producing nation, production has sharply declined over the past two decades.
Any recovery “is likely to be gradual and partial, as infrastructure has degraded and will require strong incentives for significant investment in production,” analysts, including Daan Struyven, said in their note on Sunday.
The bank kept its average price forecasts for this year unchanged at $56 per barrel for Brent and $52 for West Texas Intermediate. Futures fell at Monday’s open, with Brent trading slightly lower, around $61 a barrel.
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“Along with recent production overruns in Russia and the US, potentially higher long-term production in Venezuela further increases the downside risks to our oil price forecast for 2027 and beyond,” analysts said.
After Maduro’s capture, US President Donald Trump said that American companies would spend billions of dollars to rebuild Venezuela’s dilapidated energy infrastructure, describing an ambitious vision of using US financial resources and industry expertise to restore the country’s oil sector to its former glory.
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According to Goldman, Venezuela has the world’s largest proven oil reserves, and at its peak in the mid-2000s, it produced about 3 million barrels per day. Last November, production was 930,000 barrels per day, and it may have declined further since then after reports of production halts, the bank said.
Ahead of Maduro’s capture, the US imposed a partial blockade on tankers entering Venezuela, prompting local storage tanks to fill up.
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