Sources: OPEC+ does not expect a significant impact from ‎easing US sanctions on Venezuela

OPEC+ sources said that easing US oil sanctions on Venezuela, a member of the Organization of the Petroleum Exporting Countries (OPEC), will likely not require any change in the alliance’s current policy, as increasing its production is likely to be gradual.

According to Reuters, the position of OPEC+, which includes OPEC and other allies, towards easing sanctions means that the alliance, which produces more than 40% of the world’s oil, does not expect any significant impact on crude prices from this step, even as Washington seeks to find ways to reduce… Increased and concerns arise about supplies due to the Middle East conflict

On Wednesday, the US President’s administration significantly eased sanctions on the oil and gas sector in Venezuela

An OPEC+ source said, “Let us see the level of production increase… It may be small quantities, and then it is unlikely that we will see a change in policy.”

Another OPEC+ source also said that the production recovery will likely be gradual and there will be no impact on OPEC+ policy in the short term. A third said, “Excellent news for Venezuela.”

OPEC figures show that Venezuela’s production has increased slowly in the past two years, and despite reaching 733,000 barrels per day in September, it is still small compared to the 2.4 million barrels per day that Venezuela produced in 2016.

Venezuela, Iran, and Libya are among the OPEC countries excluded from supply cuts within the framework of the broader OPEC+ alliance due to internal or external challenges facing their production. A fourth OPEC source said that this situation will continue

Analysts say that Venezuela needs a long list of things to once again become an important oil exporter, including dozens of drilling rigs and billion-dollar projects to replace the infrastructure of refineries.