Daily Energy Report
Venezuelan oil roulette, Aramco selling prices, Saudi Arabia & Iran relations, India needs LNG, Oil prices & inflation, Airlines face higher fuel costs, Russia’s Siberia-2 pipeline to China and more
Chart of the Day: The decline in Venezuelan oil production, what is next?
Figure (1) above shows Venezuela’s crude exports as reported by Kpler. It shows that crude exports have been declining recently.
EOA’s Main Takeaway
Venezuela is back in the news recently for two reasons: 1. Efforts by the Biden administration to increase Venezuelan oil exports despite sanctions, and 2. The sharp decline in exports despite these efforts. Venezuela can increase exports quickly by 300,000 to 400,000 b/d if it receives steady supplies of diluent (Natural gasoline, C5) from the US in the amounts of 100,000 b/d to 120,000 b/d. Additional production and exports will take time. Adding another 1 mb/d will require about three years, assuming all stars line up for the Venezuelan oil sector.
Story of the Day
Aramco releases its Official Selling Prices (OSP) on or around the 5th of every month. Today it released October prices. It raised prices to Asia and the US and lowered them to Europe.