"It's a math problem. Hormuz flows about 20 million barrels of oil a day. Venezuela is currently producing about 1 million barrels daily. Venezuela helps; every little bit helps. But, in the grand scheme of things, it doesn't change the equation. There is no medium-term solution other than reopening the straits. Nothing else is going to solve the crisis."
"I'm expecting less than 250,000 barrels added over the whole year, if at all. That is of course significant for a country that produces just 1 million, but it's nothing for the world market. It's less than 0.3%. In particular, it's very insignificant compared to the disrupted market."
During the Iran conflict's third week, the Trump administration has pursued Venezuelan oil as a potential energy solution following Nicolás Maduro's seizure and pressure to reopen the nation's oil sector. However, experts argue this approach is insufficient. The Strait of Hormuz, effectively closed by Iran, handles approximately 20 million barrels daily—representing 20% of global oil and liquefied natural gas supply. Venezuela currently produces only 1 million barrels daily, with projections suggesting minimal growth to 1.2 million by 2026. This potential increase of less than 250,000 barrels annually represents less than 0.3% of global consumption at 103 million barrels daily. Experts conclude that reopening the Strait of Hormuz remains the only viable medium-term solution to the energy crisis.
#iran-conflict #oil-supply-crisis #strait-of-hormuz #venezuelan-oil-production #global-energy-markets
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