Venezuela might depart from OPEC Link copied
Venezuela is contemplating withdrawing from the Organization of the Petroleum Exporting Countries, which could represent another blow to the oil cartel.
This is reported by Bloomberg , citing sources.
The idea of withdrawal was discussed during the country’s negotiations with U.S. representatives, though a final decision has not yet been reached.
Why is this happening?
A decision to leave OPEC would underscore a significant political realignment in Caracas, occurring after U.S. President Donald Trump removed dictator Nicolas Maduro and took control of the nation’s oil industry.
The growing influence of Washington is also reflected in the U.S. discussions with Venezuelan leadership regarding securing a substantial stake in the country’s oil fields. Among potential options is a 100-year lease for several oil fields.
Venezuela was once a leading member of OPEC, but its significance has diminished as U.S. sanctions and internal instability have led to the decline of its oil sector.
In July, the country produced 1.16 million barrels per day, less than half of the volume it produced a decade ago. However, production has seen an increase this year.
What will be the effect?
The agency believes that, given the long-term reduction in output, Venezuela’s potential departure is unlikely to have a significant immediate impact on global oil markets, which are currently dominated by the consequences of the U.S. conflict with Iran.
However, this idea is gaining traction amidst public disappointment regarding membership commitments, as expressed by Iraq and other nations.
Venezuela’s exit would amplify doubts about OPEC’s continued ability to maintain unity and influence oil prices. Further disintegration of the organization could plunge its members into a fierce competition for market share, echoing the brief price war of 2020.
One of Bloomberg’s sources indicates that some U.S. officials envision the creation of an oil superpower based on an alliance between the U.S. and Venezuela, which would considerably diminish OPEC’s influence.
Due to its low production currently, Caracas is not subject to any OPEC production restrictions. Simultaneously, freeing the country from any potential quotas would help it maximize production in the long term.
This would allow Washington to implement its plans for the country’s oil sector without being constrained by obligations to another organization.
Furthermore, Venezuela’s possible departure from OPEC would pave the way for international oil companies from the U.S. and other nations, enabling them to play a larger role in revitalizing the country’s oil industry, thereby intensifying the global oil surplus projected for the coming years.
Additionally, the country’s exit from OPEC would be a victory for Trump, who has long criticized OPEC for its quotas leading to higher oil prices and fuel costs for Americans.
Read also The end of an era for the oil cartel? Why the UAE is leaving OPEC
Recall:
The United Arab Emirates withdrew from the Organization of the Petroleum Exporting Countries (OPEC) on May 1, 2026.
The United Arab Emirates’ decision to leave OPEC was prepared over three years and is based on the view that the world is nearing the end of the hydrocarbon era, necessitating the sale of maximum oil “here and now.”
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