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Russian Oil Cutoff Boosts Outlook for Venezuelan Output Revival

  • Consultancy says output could nearly double with U.S. waiver
  • Others are more skeptical on potential to ramp up production
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Biden Announces U.S. Ban on Imports of Russian Oil

The prospect that the U.S. could ease sanctions on Venezuela’s state oil producer to offset Russia’s cutoff from global markets has observers wondering how much crude the South American nation is able to add to a market roiled by the war in Ukraine.

The most optimistic outlook from energy consultancy IPD Latin America sees production nearly doubling by year-end if exports from the South American country can flow freely and it’s able to import much-needed parts and equipment for its crumbling oil industry. Skeptics, however, say it would take billions of dollars of investment over several years before Venezuela can increase output substantially.