Venezuela Weighs Exit from OPEC Amid Talks with Washington

Venezuela is reportedly considering leaving the Organization of the Petroleum Exporting Countries (OPEC) in a move that could reshape its oil alignments. The South American nation, an original OPEC founder, has been engaging in backdoor talks with U.S. officials about deepening ties, including a possible century-long lease on some of its oil fields.

According to sources briefed on the talks, Venezuela's exit from OPEC could have significant implications for oil politics. The country's oil output has seen a sharp decline over the past decade, plummeting to just over 1.1 million barrels daily by July. This drop means an exit from the cartel may not cause large immediate ripples across global crude markets but could chip away more at OPEC's already fragile unity.

The move coincides with Washington's interest in accessing Venezuela's oil reserves more directly, signaling a thaw in relations after years of tension. Citi's Scott Gruber notes that the next significant growth in oil volumes may come from outside the U.S., highlighting a broader trend impacting oilfield service companies globally.