Tom Kirkman

Venezuela's oil minister General Quevedo tasked by Maduro to increase oil output by 1 million barrels per day. Not going to happen...

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So how exactly is a military general with no experience in Oil & Gas supposed to significantly increase oil output, despite increased international sanctions?

Maybe Maduro should instead ask the Oil Fairy to grant him a wish, the odds of success might be better.

Venezuela's Maduro seeks oil output boost as he is sworn in

"Turning to Venezuela's oil minister, General Manuel Quevedo, who was attending the ceremony, Maduro said Venezuela would have to increase its output by one million barrels per day.

"This year we have to increase one million barrels. If we have to ask for support from OPEC, ask for it major general - support from Russia, China, the Arab countries, let's ask!"

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Maduro is out of luck.  OPEC is unlikely to help bail out Venezuela and PSVSA for free, as Russia and Saudi Arabia are considering adding 1 million barrels a day to their own production - to make up for plummeting oil production by PDVSA.

Oil Plunges Below $70 After Saudis, Russia Say "Likely Supply Boost" In Second Half Of 2018

And while Al-Falih's Russian peer, Energy Minister Novak said it is too early to talk about the possible scale of easing production cuts, he added that easing production cuts would make sense in Q3 2018, confirming that it is now just months before OPEC starting pumping extra oil into the system to offset the decline from both Venezuela and, soon, Iran.

As Bloomberg adds, the oil producers ex-shale are debating whether resuming normal compliance with the accord would mean nations individually return to 100 percent compliance with their targets, or whether the group as a whole would aim for that level, the people said, asking not to be identified because the talks are private.

The first case would return only a limited amount of supply to oil markets, mainly from Saudi Arabia. The second could allow the group to boost output more significantly, as other members offset losses from the collapse in Venezuela’s oil industry. Oil producers are debating an increase ranging from 300,000 barrels a day at the low end, backed by Gulf producers including Saudi Arabia, and a larger increase of about 800,000 barrels a day favored by Russia, one person said.

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