The latest data from the organization indicates that the price of Merey 16 oil, the Venezuelan reference within the OPEC basket, registered an average between January and July of 81.86 dollars per barrel, double the average in 2021
The price of a barrel of Venezuelan oil it was quoted at 84.72 dollars on average last July, which meant a drop of 8.2% compared to June ($92.25), as highlighted in the monthly report of the Organization of Petroleum Exporting Countries (OPEC).
The data in the report indicates that the price of Merey 16 crude, the Venezuelan reference within the OPEC basket, registered an average between January and July of $81.86 per barrel, a figure well above the $47.33 of the value shown in the same period of 2021.
The document explained thatInternational crude oil prices fell significantly in July after two consecutive months of strong increases. Especially, the international reference barrel of the North Sea, Brent, which fell almost $11 a barrel in July.
July has not been a good month for the state oil company PDVSA, since according to the report of the international organization, the production of Venezuela also had a decline of 7% (49,000 barrels per day) closing at 661,000 b/d, according to sources. high schools.
Decrease that was endorsed by the figures from primary sources (PDVSA) delivered to OPEC which reported a production of 629,000 b/d, which represented a reduction of 98,000 b/d and 13% compared to June. In this way, it is located at the lowest level of the entire year 2022.
Since the application of oil sanctions to Venezuela by the United States, PDVSA has had to sell its oil at significant discounts and, while the world market showed high volatility in hydrocarbon prices.
This discount policy was confirmed in March 2022 by Delcy Rodríguez, vice president appointed by President Nicolás Maduro, in a speech in the National Assembly, noting that “Excessive costs and discounts represent about 25% of the price of crude oil” and that “once the payment is received, additional costs must be paid to move the money to Venezuela. As a result of the blockade, these payments came to cost up to 15% of the gross value to be mobilized.
Recently, the economist Rafael Quiroz Serrano said that PDVSA competes with Russia and Iran with discounts of between $30 and $40 per barrel. He explained that Russia’s military invasion of Ukraine and the sanctions on Russian crude have impacted the international oil market, which has generated a strong placement of cheap Russian crude in China.
“Venezuela is then competing with Russia with the aggravating circumstance that it continues to be transported furtively due to the risk of sanctions and with the detail of being a lower quality crude compared to the similar one from the Eurasian country,” said Quiroz Serrano.
Despite the fall in crude oil prices and Venezuelan production, the Venezuelan Treasury has received more resources in oil income. According to calculations by the consulting firm Ecoanalítica, the Maduro administration is receiving 150% for this concept. While the economist and deputy José Guerra predicts that the country receives this year $20,000 million of exports executed by the industry.
On the other hand, according to OPEC estimates, the same three oil drills of the North American company Baker Hugues remain in Venezuela, which are shown in the report from the fourth quarter of 2021. This figure stands out significantly when compared to the 25 operating rigs that existed in 2019.