OPEC may lose another country

The idea of ​​leaving was discussed during the country's talks with US officials, but a final decision has not yet been made, Bloomberg reports.

A decision to leave OPEC would highlight the massive political reshuffle in Caracas that occurred after US President Donald Trump kidnapped dictator Nicolás Maduro and seized control of the country's oil industry.

Washington's growing influence is reflected in US negotiations with Venezuelan leaders over a significant stake in the country's oil fields. Among the possible options is a 100-year lease for several oil fields.

Venezuela was once a leading member of OPEC, but its importance has diminished as US sanctions and domestic instability have led to the decline of its oil industry. In July, the country produced 1.16 million barrels per day—less than half the volume it produced 10 years ago. However, production has risen again this year.

Given the long-term decline in production, Venezuela's likely exit is unlikely to have a significant immediate impact on global oil markets, currently dominated by the aftermath of the US-Iran war.

However, the idea is gaining momentum amid public disillusionment with the membership commitments stated by Iraq and other countries.

Venezuela's exit would heighten doubts about whether OPEC can continue to maintain unity and influence oil prices. A further disintegration of the organization could drag its members into a bitter struggle for market share, a repeat of the brief price war of 2020.

Some US officials envision the creation of an oil superpower based on an alliance between the US and Venezuela, which would significantly reduce OPEC's influence.

Due to its low production, Caracas is currently not subject to any OPEC volume restrictions. However, exempting the country from any potential quotas would help it maximize production in the long term.

Washington would then be able to pursue its plans for the country's oil sector without being constrained by obligations to another organization.

Venezuela's possible exit from OPEC would pave the way for international oil companies from the US and other countries to play a more significant role in rebuilding the country's oil industry, which would exacerbate the global oil glut projected in the coming years.

The country's exit from OPEC would be a victory for Trump, who has long criticized OPEC for its quotas driving up oil prices and fuel costs for Americans.

Photo: Zscout370.