We have been used to receive the news of how poorly Venezuela is doing and how its oil production has declined over the years. Venezuela is still under US sanctions so it lacks the necessary capital and expertise from foreign energy companies from the Western world.

Venezuela surprised the oil markets by reporting a significant jump in crude oil output for November 2021. It reported 824,000 barrels per day for November 2021. This represents a 9% increase compared to the previous month and doubles the 434,000 barrels per day produced in November 2020.

How is this being achieved? It seems to be that the cooperation with Iran is paying its dividends. Venezuela has no where else to go (besides China and Russia) because US and European companies are not allowed to invest. Specifically, Venezuela has obtained diluent form Iran, needed to be added to the extra-heavy crude produced in Venezuela so that it can be transported for processing and export.

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This post is intended to only raise awareness. In order to make actual financial decisions please contact your financial advisor and/or tax advisor prior to making the decision.