Markets skeptical of Venezuela’s plan to increase oil production

Markets skeptical of Venezuela’s plan to increase oil production

Venezuela’s Oil Minister Manuel Quevedo has held discussions with the country’s state-owned oil giant PDVSA to boost its oil production in the second half of 2018.

Although Venezuela has claimed it is revising its plans for production to make this year one of “consolidation and stabilisation”, the industry in a broader sense struggles to believe the country will be able to reverse its steep production decline that has plagued the country’s economy for several months.

OPEC noted in its monthly report that crude production in Venezuela dropped by 47,500 barrels per day between May and June to average 1.340 million bpd – a drastic fall in comparison to the average of 2.154 million bpd in 2016 and 1.911 million bpd in 2017.

While the South American country has been self-reporting much higher production figures to OPEC, industry experts have said that oil production in Venezuela could plummet to 1 million barrels per day (bpd) as early as this year.

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