VENEZUELA could become one of the biggest sources of new oil supply in the world over the next decade if the country undergoes a political transition, potentially reshaping global energy markets and keeping oil prices lower for longer, said JPMorgan in its latest report.
In its Oil Markets Weekly, JPMorgan said a regime change in Venezuela would represent one of the largest upside risks to global oil supply in 2026 and beyond, an outcome that oil markets are not currently pricing in.
Venezuelan crude production, which stands at roughly 750,000-800,000 barrels per day, could rise to 1.3-1.4 million barrels per day within two years of a political transition and potentially reach 2.5 million barrels per day over the next decade with sustained investment.
Notably, Venezuela remained a massive player in the oil industry in terms of reserves.
Earlier on Tuesday night, US President Donald Trump announced that the interim authorities in Venezuela would turn between 30 and 50 million barrels of sanctioned oil to the United States and said that while the oil will be sold at its market price, the money will be controlled by US President to ensure it is used to benefit the people of Venezuela and the United States.
ANI
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