Venezuela's Oil Output to Rise Modestly After US Sanctions Relief -EIA

SEATTLE (Oil Monster): Venezuela's crude oil production will increase by less than 200,000 barrels per day (bpd) to an average of 900,000 bpd by the end of 2024 under easing of U.S. sanctions, the U.S. Energy Information Administration estimated on Tuesday.

The United States in October broadly eased sanctions on Venezuela's oil and gold mining sectors for six months, allowing it to produce and export its crude oil to its favored markets.

"While the political situation remains in flux, we expect sanctions relief will only lead to limited increases in oil production.

Venezuela's average daily production through October was some 780,000 bpd, below state-owned oil firm PDVSA PDVSA.UL's 1 million bpd target.

Further increases in Venezuela's crude oil production will take longer and require significant investment after years of deferred maintenance and lack of access to capital, EIA said.

Courtesy:  www.reuters.com