Venezuela’s decline in oil production could tip global crude market into deficit
Paris — A dramatic decline in oil production in crisis-hit Venezuela could tip the global crude market into deficit, the International Energy Agency (EIA) said on Thursday, helping wipe away a glut that has depressed prices for years. Oil is the lifeblood of oil cartel Opec member Venezuela’s economy, but a major wave of political unrest that shows no sign of abating has slashed output. "With supply from Venezuela clearly vulnerable to an accelerated decline, without any compensatory change from other producers, it is possible that the Latin American country could be the final element that tips the market decisively into deficit," the IEA said in a report. Global oil prices have swung wildly in recent years as producers struggled to meet demand, only to flood the market with supplies as they tried to squeeze rivals out of business. After collapsing to less than $30 a barrel at the beginning of 2016, prices have gradually risen to higher than $60 as Opec and Russia have restrained pr...
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