Venezuela skyline with mountains

Venezuela Commodities June 2018

Venezuela: Oil prices edge down in June

The average price of Venezuela’s mix of crude oil came in at USD 64.5 per barrel (pb) in June, falling 1.2% from May’s average of USD 65.2 pb. Despite the fall, oil prices are still at one of the highest levels in years, and Venezuelan oil prices were up 57.9% over the same month last year in June.

Global oil prices have climbed gradually since early 2017, reflecting restricted supply from key producers and healthy global demand. On 22 June, however, OPEC members and non-OPEC oil-exporting nations agreed to raise oil production, reducing the production restrictions previously imposed. Despite higher expected output among key oil-exporting nations, oil prices are expected to remain firm due to falling production in Venezuela and negative spillovers from the U.S. sanctions on Iran.

Chronic mismanagement, insufficient investment, a vacuum of skilled labor and electricity rationing have caused oil production to plummet in Venezuela in recent years. The latest OPEC production data for May revealed that production dropped to 1.39 million barrels per day (mbpd), down from April’s 1.43 mbpd. Moreover, state oil company PDVSA has been struggling to fulfill supply contracts hindered by financial woes and by ConocoPhillips’ seizing of some of the company’s Caribbean assets, limiting PDVSA’s export capacity. However, on a bright note for the battered energy sector, Finance Minister Simón Zerpa stated in early July that the China Development Bank has agreed to invest around USD 250 million to help boost Venezuelan oil output.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest