Venezuela Weighs Exit from OPEC as Cartel's Unity Erodes

OPEC's unity and influence are at risk as Venezuela considers leaving the cartel. The country, a co-founder of OPEC, is debating an exit after being exempt from production quotas due to its prolonged economic collapse.

A Venezuelan departure would have minimal short-term supply consequences but could erode OPEC's unity and pricing power. If it follows in the footsteps of the UAE, which left the cartel in April, Venezuela's exit would strip over 5 million barrels per day of production capacity from the group.

OPEC faces a balancing act as global oil demand continues to shift towards emerging markets. The US has increased its supply significance, and China is assuming a larger role in global demand.