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The possibility of Venezuela leaving OPEC, the organization that the country helped found in 1960.
-Idea: This emerged in talks with U.S. officials after Venezuela changed its diplomatic relations with Washington.
-Impact on OPEC: If it leaves, OPEC would lose a founding member, which could weaken the group’s position and influence.
-Impact on oil prices: Even if Venezuela exits OPEC, it does not automatically mean crude oil prices will fall right away. The reason is that Venezuela’s current production is only about 1 million barrels per day, and boosting output requires major investment in infrastructure.
-Conclusion: For traders, leaving the organization matters less than the country’s actual ability to supply oil to the market.#laxonoong
The possibility of Venezuela leaving OPEC, the organization that the country helped found in 1960.
-Idea: This emerged in talks with U.S. officials after Venezuela changed its diplomatic relations with Washington.
-Impact on OPEC: If it leaves, OPEC would lose a founding member, which could weaken the group’s position and influence.
-Impact on oil prices: Even if Venezuela exits OPEC, it does not automatically mean crude oil prices will fall right away. The reason is that Venezuela’s current production is only about 1 million barrels per day, and boosting output requires major investment in infrastructure.
-Conclusion: For traders, leaving the organization matters less than the country’s actual ability to supply oil to the market.#laxonoong