Venezuela may be forced to start shutting in oil production as it runs out of storage space amid the U.S. tanker blockade, Bloomberg has reported, citing unnamed sources.
According to the sources, the biggest oil storage hub and tankers at Venezuelan ports could fill up within 10 days, prompting production curbs.
Earlier this week, Reuters reported that some 11 million barrels of Venezuelan crude were stuck at sea amid the U.S. escalation, prompting deeper discounts and demands from buyers for changes in the spot contracts, under which the oil was being sold.
Meanwhile, Venezuela’s production of crude oil is already sliding. The International Energy Agency estimated Venezuela’s oil supply at 860,000 barrels per day in November, down from 1.01 million bpd in October and a similarly above 1-million-bpd level in September, when Venezuelan crude oil output hit its highest since February 2019.
Further declines in Venezuela’s oil supply are expected in December, following the U.S. actions in Caribbean waters. After seizing one tanker carrying Venezuelan crude early this month, the U.S. is prepared to seize mo
