Kuwait sees risk of oil supply shortage in 2019 due to Venezuela

The head of state-run Kuwait Petroleum Corp, Hashem Hashem, said on Tuesday that global oil supply could be hit this year by big reductions in exports from Venezuela.

The Trump administration has imposed sweeping sanctions on Venezuelan state-owned oil firm PDVSA, aimed at severely curbing the OPEC member’s crude exports to the United States and at pressuring socialist President Nicolas Maduro to step down.

“One of the known risks of supply shortage in 2019 would include the continuing decline of Venezuelan crude oil production beyond current expectations,” Hashem told an industry conference in Kuwait.

“However the wild card recently has been market perceptions of potential shortages mainly from geopolitical pressures that have caused supply disruptions in the past and therefore pose a real threat for 2019.”

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