If Venezuela leaves the OPEC oil cartel, drivers in the Netherlands could eventually see cheaper fuel at the pump, though energy experts warn that prices will become far more unpredictable. News agency Bloomberg reported that Venezuela is considering dropping out of the cartel following growing US involvement in its domestic oil sector. This development comes just four months after the United Arab Emirates announced its own departure from the group, further shaking the stability of global energy markets.
Experts explain that losing key members weakens OPEC’s ability to control global oil supplies, which could initially push costs down. Free from the cartel’s strict production limits, Venezuela aims to significantly boost its oil output with American backing. Energy analyst Hans van Cleef suggests global oil prices, which currently stand above 80 dollars a barrel, could eventually plunge to between 30 and 40 dollars, leading to noticeable savings for consumers at the petrol pump.
However, analysts stress that this price relief is unlikely to last and will come at the cost of extreme market volatility. Independent energy consultant Ali Al Riyami warns that a weakened cartel will lead to a period of unprecedented price swings without OPEC’s unifying control. Furthermore, prolonged periods of low oil prices typically cause companies to slash investment in new production, which energy experts warn could lead to severe supply shortages and even sharper price surges further down the line.
@anp | NEWS BRAINPORT
