New York, January 7:
Global investment bank JP Morgan has said that a potential revival of Venezuela’s oil sector, driven by recent political shifts, could contribute to keeping global crude oil prices lower for a prolonged period. In its latest assessment, the bank noted that easing geopolitical constraints and changes in Venezuela’s political environment may allow the country to gradually increase oil production and exports. Such an outcome, according to analysts, could add meaningful supply to the global market at a time when demand growth remains moderate and several major producers are managing output levels.
JP Morgan further highlighted that Venezuela’s return as a more consistent oil exporter could alter supply dynamics, particularly in markets sensitive to price volatility. While challenges such as infrastructure limitations, investment needs, and regulatory clarity remain, even incremental increases in Venezuelan output could exert downward pressure on prices. Market observers believe that sustained production growth from Venezuela, combined with stable output from other producers, may limit sharp price spikes and contribute to a more balanced global energy market over the medium to long term.
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