OPEC can safely cover the Venezuela production gap

Oil cartel OPEC has sufficient extra production capacity to be able to accommodate a sharply falling production in Venezuela. The International Energy Agency (IEA) writes this in its monthly report.

Venezuela is suffering from a deep political crisis and has to deal with sanctions from the United States. Oil production in the country is very vulnerable to power outages. According to the IEA, an export volume of 1.2 million barrels per day of Venezuelan oil may be endangered if the crisis gets even further out of hand. But since OPEC has reduced production, there is sufficient capacity to fill the probable Venezuela gap, the agency said.

The IEA also maintained its expectations for global oil demand. According to the organization, demand is increasing this year by 1.4 million barrels per day.

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