Venezuelan oil output decades from peak despite US deal boost: Rystad Energy

Venezuelan oil production is projected to take decades to return to its peak levels of more than 3 million barrels per day, according to a report by Rystad Energy. This outlook persists even as a recent agreement with the United States is anticipated to boost short-term output. Currently, Venezuela’s crude production is estimated at 1.1 to 1.25 million barrels per day, significantly below its historical peak. The report indicates that the return to peak production levels would require substantial investment and time, despite the recent US-linked deal designed to increase near-term output. This development aligns with a broader pattern of sanctions relief and licensing intended to elevate Venezuelan supply from its 2020 lows. Key Takeaways The report suggests that Venezuelan oil production is unlikely to return to historical peak levels for several decades. The current production levels have increased modestly due to a recent US deal but remain far below the late 1990s peak. Market pricing suggests a diminished likelihood of crude oil reaching a new all-time high in the near term. What to Watch Markets will be closely monitoring any further developments in US-Venezuelan relations an...