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AIE expresses its concern over the fall of oil in Venezuela due to the blackout

Paris.- The fall of oil production in Venezuela, caused by a huge power outage, could pose a problem for market supply, so it would be necessary to go to Saudi Arabia's supplementary capacities, the International Energy Agency (IEA) said on Friday. .

"Last week, the operations of the sector (Venezuelan oil) were seriously disrupted and the current large-scale losses could pose a difficulty for the market" says the IEA in its monthly report on oil.

Venezuela suffered a gigantic electrical failure that affected in particular the activity of the public oil company Pdvsa, crucial for the local economy.

"Although there are signs that the situation is improving, the degradation of the electrical system is such that we can not be sure that the repairs will last." said the Paris-based agency.

Venezuela's production had stabilized at around 1.2 million barrels per day (mbd). The figure also corresponds to the volume of voluntary reduction of production decided by the Organization of Petroleum Exporting Countries (OPEC) and Russia to sustain oil prices, highlights the IEA.

In total, the members of the cartel -except for Iran and Venezuela- have 2.8 mbd of additional production capacity (two thirds in Saudi Arabia), according to the IEA calculations.

"In case of significant loss of production from Venezuela, the potential means to avoid a serious disturbance of the market are within reach," the agency said.

According to an OPEC report published on Thursday, oil production in Venezuela fell during February, before the blackout, at 142,000 barrels a day to just over 1 mbd.


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