(by Roberta Preziosa) Exports of oil, of Venezuela, have undergone a considerable reduction in the last year (-40%) and, most likely, the furniture, in this month, could still be halved.
The disastrous effect on Venezuelan exports has been represented:
- from the move by Caracas which, struggling with an economic crisis that is literally destroying the country, would have decided, “motu proprio”, to block a part of exports (and therefore less crude oil) for unspecified “causes of force majeure”;
- from the seizure, obtained last month, by Conoco Phillips (a series of strategic plants of PDVSA) that, however, could not deliver the volumes stipulated by contract and that often ended up on the brink of bankruptcy, as, would no longer have means to extract oil because of the serious crisis that is affecting the country.
To complicate the situation, already dramatic, there would also be the maintenance of the Petro Piar plant (participated by Chevron) that, until some time ago, was the only one that worked well.
However, all the insiders are waiting for the next 22 to 23 June, for the highly anticipated OPEC summit.
With the export of Caracas that is likely to collapse at least half a million barrels a day, the increase in production needed to offset the deficit must be much more sustained than expected by Saudi Arabia and Russia.
With the United States pushing for a reduction in production cuts, convincing all coalition member countries will be a very difficult undertaking.
President Donald Trump, last May, issued a "executive order " which increases the economic pressures on Venezuela, prohibiting the purchase of debts held by the Venezuelan government that include those of the oil company Petroleos de Venezuela.
The United States and its allies in Latin America see the Maduro administration (elections of the last 20 May considered illegitimate by the US and the EU) as the main obstacle to the solution of the country's crisis.
The summit in the coming weeks is looming with tensions.