World oil production may shrink by 4% in 2018

Baku. 12 January. REPORT.AZ/ World oil production this year may fall by 4% due to problems with the extraction of raw materials in Venezuela, Iraq, Libya and Nigeria. 

Report informs citing the Vestifinance.ru, decrease in oil production in 4 countries can make 3 mln barrels/day.

Among them Venezuela faces the greatest problems. The Global Head of Commodities Research at Citigroup Edward Morse noted that Venezuela's production could fall by 700,000 barrels/day and make below 1 million barrels/day. 

Notably, oil production in Venezuela in December 2017 amounted to 1.7 mln barrels/day and this is the lowest level since 1980s. Compared with previous year, oil production in Venezuela has dropped by about 500,000 barrels a day.

"The Venezuelan economy can collapse at any time. As a result, Venezuela will not increase oil production”, chief oil analyst at DNB Bank in Norway Torbjorn Kjus said.