Venezuela has a history of ‘WALKING AWAY’ from deals like THIS: Schork Group principal
Stephen Schork, principal of the Schork Group, analyzed the current oil and gas prices, stating that while Venezuela has vast oil reserves, it will take five to ten years for its production to significantly impact global markets due to decades of mismanagement. He also noted that refinery capacity, not crude oil supply, is the primary constraint driving high prices, exacerbated by the war in Ukraine impacting European refinery capacity and making the US a global marginal supplier of diesel fuel.
The current shortage in global refining capacity and potential supply disruptions are leading to historically high diesel prices, which will increase the cost of goods and contribute to inflation.
The U.S. Strategic Petroleum Reserve is at its lowest level since 1982, with integrity concerns arising if further withdrawals are made; the Strait of Hormuz's role in current price volatility is also mentioned.
VENEZUELA OIL PRICES STEPHEN SCHORK REFINERY CAPACITY DIESEL FUEL