David Oxley, a macro analyst at KITU, said that oversupply in the global oil market and the high production costs of heavy Venezuelan oil may weaken the economic viability of large-scale investment in new oil wells. “While Trump clearly wants American oil companies to increase their activity in Venezuela, falling oil prices and political uncertainty will hinder efforts to develop its huge energy potential,” the economist said. KITU Macro expects global oil production to be about 3% higher than demand this year, and the price of Brent crude oil will be close to 50 US dollars per barrel by the end of the year. Oxley emphasized, “Crucially, we have anticipated that falling oil prices will cause a slight decline in US domestic oil production by 2027, so it is difficult for the general environment to be conducive to large-scale investment in new high-cost oil wells in Venezuela.”

David Oxley, a macro analyst at KITU, said that oversupply in the global oil market and the high production costs of heavy Venezuelan oil may weaken the economic viability of large-scale investment in new oil wells. “While Trump clearly wants American oil companies to increase their activity in Venezuela, falling oil prices and political uncertainty will hinder efforts to develop its huge energy potential,” the economist said. KITU Macro expects global oil production to be about 3% higher than demand this year, and the price of Brent crude oil will be close to 50 US dollars per barrel by the end of the year. Oxley emphasized, “Crucially, we have anticipated that falling oil prices will cause a slight decline in US domestic oil production by 2027, so it is difficult for the general environment to be conducive to large-scale investment in new high-cost oil wells in Venezuela.”