On August 27 local time, Bloomberg reported, citing sources, that the Venezuelan government is considering exiting the Organization of Petroleum Exporting Countries (OPEC), but has not yet made a final decision.
Sources revealed that Venezuelan and American officials have been discussing the possibility of Venezuela leaving OPEC. Some American officials hope to establish an “oil alliance” between the two countries in order to weaken OPEC’s influence. Another source said that if Venezuela leaves OPEC, the United States will be able to freely implement plans targeting Venezuela’s oil industry, thereby gaining more oil.
The White House spokesman has not commented on this news yet, and the Venezuelan government has also not responded.
Bloomberg pointed out that after Venezuela’s President Maduro came under U.S. control, the U.S. influence in Venezuela has been increasing. If Venezuela actually withdraws from OPEC, it would mean a complete “political restructuring” of the country.
Venezuela is one of the founding members of OPEC. However, due to U.S. sanctions and domestic turmoil, Venezuela's influence within the organization has diminished significantly. Reports indicate that in July this year, Venezuela's oil production was 1.16 million barrels per day, less than half of what it was ten years ago.
Analyses suggest that given Venezuela’s low oil production, the country’s consideration of withdrawing from OPEC is unlikely to have a significant direct impact on the global oil market. However, with the UAE withdrawing from OPEC in May this year and growing dissatisfaction among countries like Iraq with their obligations as members of OPEC, Venezuela’s withdrawal could exacerbate the division within OPEC.
