Venezuela Weighs Exit from OPEC Amid Shift to US Influence

Venezuela is considering leaving OPEC after decades of membership, a move that would sever one of the organization's oldest ties and deepen the country's shift towards the United States.

The possible withdrawal has emerged during discussions between Caracas and Washington, which have expanded their influence over Venezuela's energy sector and discussed taking a substantial interest in oil fields, including potential 100-year leases on several assets.

Venezuela was one of five producers that established OPEC in 1960, with Venezuelan oil minister Juan Pablo Perez Alfonzo playing a central role in building the organization. However, its economic importance within the group has since diminished, and it produced about 1.16 million barrels a day in July, less than half its output a decade ago.

Leaving OPEC could give Caracas greater flexibility if it succeeds in rebuilding capacity with foreign investment, particularly as Washington moves deeper into Venezuelan oil with Chevron agreeing to an asset swap in April that will substantially increase its operations.