PDVSA oil worker near an oil rig in Venezuela. File photo.
The benchmark price for Venezuelan oil climbed above $80 dollars per barrel yesterday, March 1, influenced by geopolitical tensions between Russia, the United States, and the European Union. Prices are also affected by problems in the supply chains of capital and consumer goods, by OPEC’s decision to raise output by only 400,000 barrels per day, and by the demand for more fuel caused by the awakening of the economy of industrialized nations experiencing an easing in pandemic-related restrictions.
Prior to the closing of the markets, the Venezuelan Ministry for Petroleum displayed various prices of national crude oil above $80, which marked an upward trend. This occurred despite the fact that the United States had decided to release 30 million barrels from its inventories, which were added to 30 million released by other oil-consuming nations interested in halting the rise in prices.
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The Organization of Petroleum Exporting Countries (OPEC) and 10 other oil-producing nations, including Russia, agreed this Wednesday to increase crude production by 400,000 barrels per day (bpd) for next April.
Russia’s military response to NATO’s military encroachment has accelerated the already rising prices, which in the case of the Merey 16 blend (Venezuela’s flagship crude) had closed at $63 per barrel in January. Thus, yesterday’s rise to $80 represents a rise of $17 per barrel for Venezuela’s benchmark crude since that time.
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As the oil market is dragged to turmoil by #sanctions on #Russia, #Venezuela is using the opportunity to export more. Shipments rose to 730,000 bpd in Feb, pushed up by more sales of Merey 16 crude and fuel oil to Asia https://t.co/FAgZy5XPiS pic.twitter.com/sn32ohnt97
— Marianna Párraga (@mariannaparraga) March 2, 2022
World oil prices rose above $114 a barrel yesterday, and the cost of natural gas soared to a new record in Europe. All this is a result of the Ukrainian conflict that complicates the global production chain, already disrupted by COVID-19.
Meanwhile, Reuters reported this Wednesday that Venezuelan oil exports, according to OPEC, rose to almost 731,000 bpd, driven by an increase in production of the Merey 16 blend, destined for Asian markets.
Featured image: PDVSA oil worker near an oil rig in Venezuela. File photo.
(Últimas Noticias) by Werther Sandoval, with Orinoco Tribune content
Translation: Orinoco Tribune
OT/JRE/SL
