Saxo Bank: The Situation in Venezuela Is Unlikely to Trigger a Repricing of Oil Prices
Saxo Bank analyst Charu Chanana wrote in a report that, in the short term, Venezuela does not represent the kind of shock factor that would automatically tighten global supply and force a significant repricing of oil prices. Even if the political landscape shifts toward a more constructive path, crude oil production is unlikely to recover quickly. The industry requires capital, equipment, manpower, and functioning infrastructure—a process of reconstruction that will take years, not a quick restart. She also noted that Venezuela’s oil sector suffers from a long-term lack of capital and limited infrastructure. For oil prices to undergo a sustainable repricing, geopolitical factors must manifest as actual disruptions to supply chains or trigger broader regional shocks.
Source:富途快讯 · Source Link
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