Venezuela Ponders Exit from OPEC After Decades-Long Membership

Venezuela is considering leaving OPEC, the organization it helped create over six decades ago. According to Bloomberg, people familiar with discussions have included U.S. officials. The decision has not been made yet.

Venezuela produced about 1.117 million barrels per day in July and is currently exempt from OPEC production quotas due to years of sanctions, underinvestment, and economic turmoil that gutted output.

The country's departure would come after the UAE left OPEC last year following frustration over production restrictions. Iraq may be next in line, having warned it could reconsider membership if an ongoing capacity review does not produce a higher production quota.

Together, Venezuela, the UAE, and Iraq represent more than 7 million bpd of production capacity, roughly 32% of OPEC's total capacity. Interestingly, U.S. and Venezuelan officials are discussing greater American participation in the country's oil fields, including a possible 100-year lease on several assets.