Venezuela Considers OPEC Exit to Forge US Oil Alliance

The Government of Venezuela is considering withdrawing from the Organization of the Petroleum Exporting Countries, a group it helped found in 1960. This potential exit follows a political shift in Caracas after United States President Donald Trump ousted Nicolás Maduro on January 3, resulting in the installation of acting President Delcy Rodríguez.

The United States is currently negotiating a deal to acquire a large stake in Venezuelan oil fields. The Trump administration seeks to establish a strategic oil alliance with Venezuela specifically to diminish the global influence of OPEC. While Venezuela produced approximately 1.16 million barrels a day in July, leaving the cartel would remove production quotas and allow international oil companies to assist in rebuilding the sector.

This move comes amid growing instability within the cartel. The United Arab Emirates withdrew from OPEC in April to utilize expanded production capacity, and Iraq has expressed frustration regarding output limits. The possible departure of Venezuela further raises doubts about the ability of the organization to maintain unity and control global crude prices.