OPEC+ decision to boost oil output was influenced by Kazakhstan's record production

Investing.com

Summary:

Investing.com -- Amid the ongoing debate within OPEC+ on whether to maintain the current oil output due to weak global demand or increase production in response to internal...

Investing.com -- Amid the ongoing debate within OPEC+ on whether to maintain the current oil output due to weak global demand or increase production in response to internal pressures and a request from U.S. President Donald Trump, it was the record oil production from Kazakhstan that played a significant role in the final decision, according to a Reuters report on Tuesday.

Starting from April, the group will slightly increase its oil output by 138,000 barrels per day, marking the first step in a series of planned monthly increases. This move aims to reverse the nearly 6 million barrels per day of cuts that the group had previously implemented, which equates to nearly 6% of global demand.

Kazakhstan, a member of OPEC+, is currently producing oil at a record high, significantly exceeding its target set in agreement with the producer group. This surge in production comes after American oil giant Chevron (NYSE:CVX) completed a substantial expansion at the Tengiz oilfield in Kazakhstan.

However, this increased output from Kazakhstan has led to frustration among several other members of the group, including the top producer, Saudi Arabia.

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Reuters

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Dj Usa Revokes Chevron License To Pump Venezuelan Oil

Reuters

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U.S. Revokes Chevron License to Pump Venezuelan Oil — WSJ

Wall Street Journal

Chevron

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By Collin Eaton and Patricia Garip

The Treasury Department moved Tuesday to formally rescind a Biden-era license allowing Chevron to pump oil in Venezuela, giving the company 30 days to wind down operations as the Trump administration pressures President Nicolás Maduro.

Moving to revoke Chevron's oil license marks a sharp about-face for the Trump administration. White House special envoy Richard Grenell met with Maduro in Caracas on Jan. 31, striking a deal for Maduro to resume accepting deportees, with an understanding that oil licences would remain in effect at least for now, people familiar with the deliberations said. Grenell denied that any oil-for-migrants deal had been made.

"We are aware of the President's directive and will abide by any direction given by the U.S. Treasury Department to implement that directive," Chevron spokesman Bill Turenne said. "Chevron conducts its business in Venezuela in compliance with all laws and regulations, including the sanctions framework provided by U.S. government."

Today"s action does not apply to non-U.S. oil companies that have operations in Venezuela, including European firms Repsol, ENI and Shell. But the Treasury Department could later.

Updates to follow as news develops

Write to Collin Eaton at collin.eaton@wsj.com

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Chevron Says It Is Aware Of Usa President's Directive On Venezuela And Will Abide By Any Direction Given By Usa Treasury Dept

Reuters

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Update: US Treasury Authorizes Wind Down of Certain Chevron JV Transactions in Venezuela

MT Newswires

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(Updates with further details in the second and third paragraphs.)

The US Treasury Department's Office of Foreign Assets Control on Tuesday authorized "the wind down of certain transactions related to Chevron corporation's joint ventures in Venezuela."

The Treasury Department revoked Chevron's license to operate the ventures in Venezuela and gave the company until April 3 to complete winding down its operations.

According to a statement from the department, a new license was issued to Chevron, limiting the sale of the ventures' petroleum products to just the US. The new license, however, does not allow payments of taxes or royalties to the Venezuelan government or any dividends to Chevron's local joint venture partner.

Chevron did not immediately reply to a request for comment from MT Newswires.

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Chevron stock drops on Venezuelan operation halt - Bloomberg

Investing.com

Chevron

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Investing.com -- Chevron Corp (NYSE:CVX) shares fell 1.2% following the U.S. Treasury’s decision to enforce President Donald Trump’s directive to cease the company’s oil production and sales in Venezuela, as reported by Bloomberg News. The stringent measure, which demands a complete shutdown of Chevron’s operations in the country by April 3, represents a significant escalation in the U.S. efforts to pressure Venezuelan President Nicolas Maduro’s regime.

The Treasury’s abrupt 30-day deadline contrasts sharply with the typical six-month period companies are usually granted to wind down operations. This accelerated timeline reflects the Trump administration’s intensified approach to hasten Maduro’s exit from power. Chevron’s involvement in Venezuela, through its joint venture with the state oil company, has been crucial, contributing approximately 20% to the nation’s oil output. This partnership has been a stabilizing force for Venezuela’s economy, mitigating extreme inflation and facilitating the flow of hard currency into the private sector.

The immediate effect of the Treasury’s directive on Chevron’s business operations and its strategic position in the global energy market has raised concerns among investors. The loss of its Venezuelan operations could have a material impact on the company’s production capabilities and financial performance. The stock’s decline reflects the market’s reaction to the sudden change in Chevron’s operational landscape.

Chevron’s exit from Venezuela under these circumstances underscores the geopolitical risks inherent in the oil industry, particularly in regions with high political volatility. The market’s response to the Treasury’s decision may continue to evolve as investors and analysts assess the long-term implications for Chevron’s global operations and revenue streams.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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OPEC+ decision to boost oil output was influenced by Kazakhstan's record production

Brent Hits 6-Month Low On Opec+ Output Increase, Us Tariffs, Pause In Ukraine Aid

Dj Usa Revokes Chevron License To Pump Venezuelan Oil

U.S. Revokes Chevron License to Pump Venezuelan Oil — WSJ

Chevron Says It Is Aware Of Usa President's Directive On Venezuela And Will Abide By Any Direction Given By Usa Treasury Dept

Update: US Treasury Authorizes Wind Down of Certain Chevron JV Transactions in Venezuela

Chevron stock drops on Venezuelan operation halt - Bloomberg

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