If the global oil
market suddenly loses Venezuela's 2 million barrels of daily oil production, it
would be "a big shock to the system," according to Dan Yergin, vice
chairman of IHS Markit. "It would certainly be a very tight market,
because of course you already have production restraints by OPEC and
non-OPEC," Yergin told CNBC at the Abu Dhabi Petroleum Exhibition and
Conference on Tuesday. Oil markets are increasingly worried over potential
supply constraints as the economic turmoil in Venezuela deepens. Production in
Venezuela has been falling and the economic difficulties have affected further
investments in the sector. As the economic situation deteriorates, production
might continue to fall from its maximum potential, thus limiting the
availability in the market. More…
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