Venezuela Oil Output to Drop by 18% on U.S. Sanctions: Woodmac

(Bloomberg) -- Venezuela’s oil production will likely fall 18 percent to around 900,000 barrels per day due to pressure from U.S. sanctions and lack of materials for workers, compared to a current output estimate of 1.1 million barrels per day, according to Ann-Louise Hittle, an oil analyst at Wood Mackenzie.

  • However, waivers will ease the full impact of the sanctions until they expire, Hittle said in an emailed note dated Feb. 2
  • Compliance with sanctions will leave a void as international companies exit the country, according to Elena Nikolova, Latin America upstream analyst at Woodmac
  • Gasoline shortages within Venezuela are likely to accelerate amid limited storage and lack of blending components, according to Ixchel Castro, Latin America refining and oil products analyst at Woodmac
  • READ: Oil Sanctions Ratchet Up Pressure on Sechin’s Venezuela Bet

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