Refining plant of the Venezuelan state-owned company Pequiven in El Palito, Carabobo. Photo: Guacamaya.
Guacamaya, June 16, 2025. The monthly report from the Organization of the Petroleum Exporting Countries (OPEC) records stable oil production for Venezuela in May, according to the Ministry of Hydrocarbons. However, secondary sources estimate a drop of 32,000 barrels per day (bpd), though these have revised Venezuela’s production upward for three consecutive months.
In May, the first effects of the U.S. cancellation of oil licenses should have begun to be seen. The wind-down periods ended on the 27th of that month, while companies like Chevron were unable to process payments as of April 2, halting most operations. Additionally, since early April, countries purchasing Venezuelan oil and gas have faced the threat of 25% secondary tariffs from Washington, DC.
Due to the threat of sanctions and tariffs, China has effectively become the only buyer of Venezuelan oil and has continued absorbing the surplus to date. According to Reuters, in May alone, the Asian giant purchased at least 584,000 bpd.
The price of Merey-16, a Venezuelan extra-heavy crude, stood at $51.73 per barrel, representing a $12.72 discount compared to Brent, a global market benchmark. Although all prices fell—reducing Venezuela’s foreign currency earnings—the relationship between the two remained stable.
Since the report presents May figures, the effects of the Middle East conflict on production and prices are not yet visible. While Israel has attacked civilian energy infrastructure in Iran, the Islamic Republic has threatened to close the Strait of Hormuz. An estimated one-third of the world’s liquefied natural gas and one-quarter of its oil passes through this chokepoint.
Meanwhile, Saudi Arabia reportedly opened all taps to increase its production by nearly 180,000 bpd, according to both sources, pushing prices downward.
For the third consecutive time, the “secondary sources” section has revised Venezuela’s crude production figures upward. Initially, it reported March and April outputs at 922,000 bpd and 888,000 bpd, respectively, but later corrected them to 933,000 bpd and 928,000 bpd.
