Published On: Fri, Mar 16th, 2018

Problems in Venezuela can now be felt on the global oil market

oil-rigCARACAS - The problems in Venezuela can be felt on the global oil markets. As a result of the deep economic crisis, the country is pumping less oil.

This sustained drop in production will contribute to the global supply shortage that is expected later this year, says the international energy agency IEA on Thursday.

The IEA also points to the production restrictions imposed by oil cartel OPEC and other oil-producing countries to support prices. On the other hand, the demand for oil is even stronger than previously estimated.

According to the energy agency, the demand for oil will exceed production in the course of this year. The problems in Venezuela, according to the experts, give the decisive push. Earlier this month, the IEA stated that rising oil production, especially in the United States, is large enough to meet growing demand.

Worldwide overproduction has put prices under pressure in recent years. The continuing low oil prices were partly the basis of the crisis in Venezuela, which depends on oil revenues for a large part of its income.

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