Analysts: Venezuela's Oil Sector Continues to Unravel
Venezuela’s oil sector “continues to unravel”, according to oil and gas analysts at Fitch Solutions Macro Research.
In a report sent to Rigzone, the analysts said declining crude output is accelerating the deterioration of the country’s refining sector, and that PdVSA is increasingly unable to both service its Caribbean assets and meet its trade commitments in the region.
“Venezuela's oil sector continues to unravel. A prolonged period of insufficient upstream investment has crippled crude production in the country,” the analysts said in the report.
“We maintain our forecast for Venezuelan crude to decline by 30.1 percent year on year, averaging 1.34 million barrels per day,” the analysts added.
In the report, the Fitch Macro Solutions Research analysts also stated that “US exports into the Caribbean are poised to rise as Venezuela's downstream sector continues to unravel”.
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