UPDATE 1-Global oil market faces less Venezuela supply in 2017 -Columbia Univ.
(Adds details, description of the report's author)
By Marianna Parraga
HOUSTON Aug 16 (Reuters) - Venezuela, traditionally a prominent oil exporter, will make a sharply smaller contribution to the global oil market in 2017 as an acute political and economic crisis affects its crude production, Columbia University said in a report released on Tuesday
As the political opposition pushes for elections to replace President Nicolas Maduro, Venezuela's economy has worsened, creating doubts about the ability of the Organization of the Petroleum Exporting Countries (OPEC) member to pay its external debt. Its largest industry, oil, is slowing down and showing signs of mismanagement.
"It is the underlying trend in Venezuelan crude production that constitutes the most important risk ahead for oil markets," said Luisa Palacios, senior managing director at Medley Global Advisors and fellow at Columbia's University Center on Global Energy Policy.
Global oversupply of 1 million to 2 million barrels per day (bpd) since 2014 has caused the worst oil price crash in a generation. Prices have languished around $45 a barrel, although the market has started to rebalance as some exporters have reduced shipments.
Venezuela's crude output in June declined to 2.36 million barrels per day (bpd), its lowest monthly level since a strike in 2002-2003, according to official figures reported to OPEC. In 2008, it was producing more than 3.2 million bpd.
The Oil Ministry last week said output rebounded in July. But statistics on state-run Petróleos de Venezuela's crude exports and rig count showed a continued decline last month, and experts say that the country is on track this year to suffer its steepest oil output drop in 14 years.
The Columbia report cited Venezuela's poor response to low crude prices compared with other oil exporting countries. Continuación...