WTI crude oil has fallen below $98. The Trump administration’s big oil deal signed with Venezuela somehow relies entirely on those aging, deteriorating oilfields with extremely high development costs.
This is interesting. The agreement looks huge, but the quality of the underlying assets is worrying. Venezuela’s oilfield infrastructure has been neglected for years, and it’s basically unrealistic to significantly increase production in the short term. Market expectations for this deal may be overly optimistic.
$CL facing short-term pressure is normal, but the real issue is the supply gap in the medium to long term. If production ramp-up at these old oilfields doesn’t meet expectations, the rebound in oil prices may come sooner than many people think.
As for $BZ , the divergence in Brent’s trend versus WTI is also worth watching—after all, the supply logic behind the two benchmarks isn’t exactly the same.
There’s also a detail that most people overlook here, and it’s the key factor that truly determines the direction of oil prices going forward.
This is interesting. The agreement looks huge, but the quality of the underlying assets is worrying. Venezuela’s oilfield infrastructure has been neglected for years, and it’s basically unrealistic to significantly increase production in the short term. Market expectations for this deal may be overly optimistic.
$CL facing short-term pressure is normal, but the real issue is the supply gap in the medium to long term. If production ramp-up at these old oilfields doesn’t meet expectations, the rebound in oil prices may come sooner than many people think.
As for $BZ , the divergence in Brent’s trend versus WTI is also worth watching—after all, the supply logic behind the two benchmarks isn’t exactly the same.
There’s also a detail that most people overlook here, and it’s the key factor that truly determines the direction of oil prices going forward.