High-level production in the U.S., aided by the steady flow of OPEC oil into the market, has contributed to low prices. But Trump’s move into Venezuela, and the possibility of stabilizing an Iran shaken by nationwide protests, might also contribute to sustaining high production levels, even considering future OPEC cuts.
Nonetheless, this depends on Venezuela’s swift oil output recovery to over 3 million barrels per day, a task considered difficult given that current levels only reach from 800,000 to 1 million barrels per day due to aging infrastructure and power constraints.
Even with Trump’s $100 billion investment numbers, which would come from private companies entering Venezuela, analysts believe production will take years to recover.
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