Venezuela is considering withdrawing from the Organization of the Petroleum Exporting Countries (OPEC), according to a report by Bloomberg on August 27, citing sources. This development comes as the Trump administration seeks to restore relations with Venezuela following the ousting of former President Nicolás Maduro in January. The interests of the Trump administration, which favors low oil prices, align with Venezuela's desire to increase oil revenue for national reconstruction.
Reports indicate that the Venezuelan government has discussed the possibility of leaving OPEC with U.S. officials, but no final decision has been made. Some U.S. officials are reportedly exploring ways to weaken OPEC's influence while building an oil alliance with Venezuela. The Trump administration is working with interim President Delcy Rodríguez, who is pro-U.S., to strengthen control over Venezuela's oil industry. As part of this effort, negotiations are underway for the U.S. to acquire significant stakes in Venezuelan oil fields.
If Venezuela withdraws from OPEC, major energy companies from the U.S. and other Western nations could enter the Venezuelan market, potentially revitalizing the oil sector that has been stagnant due to sanctions, Bloomberg noted. This move could also be a significant achievement for President Trump, who has consistently pursued low oil and low inflation policies since taking office.
OPEC, led by Saudi Arabia, has proposed production cuts, increases, and output allocations to regulate international oil prices, but some member countries have expressed dissatisfaction with these policies. Following Qatar's exit from OPEC in 2018, the UAE announced its withdrawal in April, and Iraq has warned of the possibility of leaving OPEC as well. Should Venezuela also exit, it could significantly weaken OPEC's cohesion and influence in the oil market, leading to increased downward pressure on oil prices.
Venezuela is one of the five founding members of OPEC, established in 1960, and has also played a significant role in OPEC+, which includes Russia. According to last year's OPEC annual report, Venezuela is estimated to have the largest oil reserves in the world, totaling 303.2 billion barrels. However, Bloomberg explains that due to long-standing U.S. sanctions, Venezuela's oil production has significantly declined, meaning that even if it withdraws from OPEC, the immediate impact may be limited.
* This article has been translated by AI.
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