Who’s got an opinion on what this does to the price of crude oil?
I was wondering the same thing.
1 Like
An opinion based on common sense, not of intellectual background on crude oil prices. I see it as a basic supply and demand with additional factors thrown, in such as cost to produce the crude oil. At one point drillers will stop drilling if oil doesn’t provide a profit due to falling prices.This will decrease supply while demand stays consistent, causing prices to rise. I ponder what the production cost is in Venezuela versus the United States. And is the oil a lower grade requiring higher refinery cost. Will they control production in Venezuela to protect the oil drillers in the United States? Who knows it’s all speculation at this point. Happy new year and stay positive.
3 Likes
With an additional thought. Will this oil from Venezuela actually go to the markets that Russia has been supplying? If so, that will squeeze Russia on the war with Ukraine creating a new market for this oil, offsetting the additional supply.
Venezuela oil is heavier, higher sulfur oil and not quality oil. Lighter, sweeter crude is better to refine
3 Likes
China’s envoy was visiting Maduro earlier in the day he was snatched up. I could be off base, I doubt that oil was the main reason. The Russians and Chinese have been cozying up to Venezuela. There are various terrorist groups in that area. If I recall correctly, about 20% of drugs that end up on US soil come from Columbia to Venezuela to the US. I don’t know what it means for US oil/gas prices or pumping/drilling.
Per Time and Fox business:
Venezuela’s Oil Exports
Key Buyers
Venezuela primarily sells its oil to the following countries:
| COUNTRY | OIL IMPORT VOLUME (APPROX.) | NOTES |
|---|---|---|
| China | 600,000 barrels per day | Major buyer, crucial for energy security |
| Russia | Not specified | Engaged in energy partnerships with Venezuela |
Thank you all for your insights. Time will tell.
This will obvious add more supply to market so expect it will if anything will decrease the price
The oil in Venezuela is a dark heavy crude. Oil in the Permian is a light crude. Both are needed for everyday life. Jet fuels run off of heavy crude. Refineries in the Gulf will now use the heavy crude with the Permian Basin light crude to export to the world. Don’t be surprised if there is a huge spike oil and a lot of people in this forum will be getting calls from oil and gas companies with big offers for minerals and surface rights.. I predict $70 to $80 + a barrel in the next few months. Before Trump’s term ends there will be many millionaires in this forum.Trump decisions are based on profit and the American Basins. He will will not do anything to harm the American oil business. Only enhance I believe.America 1st. Drill baby drill!
2 Likes
more supply means LOWER prices…..its simple economics…..its about 45 dollars now, no way its going to hit 70 or 80. Not happening.
Fortunately, it will take years to rebuild Venezuela’s oil infrastructure.
Venz Oil is also good because of Diesel Conversion. The Distillate side of the barrel is much more valuable to any refiner that can swing processing to make more Diesel than Gasoline.
And do not forget but add Cuba to the list. Without Venezuelan oil its electrical grid, while already failing, will suffer even more outages. Transportation there is still almost 100% internal combustion.
Ah, good point. Cuba is a throwback in time.