Iran and Venezuela could lose around 30 percent of their oil production next year due to sanctions re-imposed by the United States, according to the International Energy Agency (IEA).
In its first detailed forecast for 2019, the IEA said Venezuelan and Iranian oil production will fall by a combined 1.5 million barrels per day by the end of next year; however, extra oil output from OPEC and non-OPEC countries such as Saudi Arabia and Russia could compensate for the lost supply.
Iranian output could drop by about 900,000 barrels a day, or about 23 percent, and Venezuela could witness an output fall by 550,000 barrels a day, or 40 percent. Venezuelan production has already collapsed to the lowest in decades as the result of an economic crisis and its negative effect on oil infrastructure.
“No judgement was made as to which countries will cut back purchases,” the IEA said. Following the decision of U.S. President Donald Trump to leave the nuclear deal with Iran, many international companies, including European companies, have started to reduce purchases of Iranian oil and pull out from oil and gas projects in Iran.
The Organization of Petroleum Exporting Countries will meet next week and discuss whether to restore production it halted last year.
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