Energy analysts are actively discussing the potential impact of American control over the Venezuelan oil sector on the global energy market. Experts predict a possible drop in prices to around $50 per barrel.
This is reported by Finway
The South American country possesses significant hydrocarbon reserves that exceed those of Iraq. However, current production levels remain limited, raising skepticism about rapid changes in the market.
The new administration is demonstrating speed in making business decisions. American oil corporations, particularly Chevron, have experience in the region and can quickly ramp up operations.
Previously, Venezuelan energy resources were supplied to Cuban consumers and also reached Indian and Chinese markets through Asian logistics hubs. The American presence has already led to the cessation of the Cuban supply route.
Analysts estimate that a period of 6-12 months is sufficient for a noticeable impact on Western energy supplies. It is important to understand that futures contracts react to geopolitical changes much faster than the physical market, so the impact on prices will manifest before actual changes in production volumes.