Markets

Energy Sector Update for 03/06/2018:

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"Several knowledgeable industry sources recently told Energy Intelligence that Venezuela's oil output is down to just 1.4 million b/d, well below even more conservative prevailing estimates. Volumes could collapse further..."

Venezuela's output was 1.6 million bpd in January, according to the International Energy Agency, well below its target output of 1.97 million bpd under the Group of 24 output deal, as the sector suffers from severe under-investment because of mis-management, sanctions, etc. A survey of analysts last week by Reuters, estimated output had fallen to 1.59 million bpd last month, though estimates cover a wide spectrum.

Opec will publish official and "secondary sources" estimates of its members' February output Wednesday, March 14, followed on Thursday by the IEA's monthly estimates. The "secondary sources" -- a selection of tanker trackers, specialist sector analysts, etc. -- are the official reference point for Opec and the other non-member countries in the Group of 24 which have collectively agreed to curb their production at 1.8 million bpd below October 2016 levels.

(First Oil reports are produced by MT Newswires' global team of oil reporters. This story is also disseminated in real time to energy industry professionals via the First Oil Chat service on the ICE Instant Message application.)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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