Citi: Venezuela's production recovery will take "years"; short-term supply tightness will support oil prices
Analysts at Citi Research noted in a report that, due to technical constraints and the lack of a stable investment environment, a significant increase in Venezuela’s oil production following Maduro’s removal from office could take “years rather than months.” The analysts stated that this development could ultimately weigh on the balance of the oil market, with the potential supply increase expected to materialize in 2027/28. In the short term, however, “until the U.S. reaches an agreement with Venezuela’s current leadership, the global market is likely to continue to lose Venezuelan oil supplies, which is a net positive factor.” "Citi added that oil supply risks remain high enough to support Brent crude above $60 per barrel in the coming weeks.
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