LatAm Briefs: Venezuela Oil Output, Ecopetrol Tactical Hedges

(Energy Analytics Institute, 5.May.2021) — Energy briefs from the Latin America and Caribbean region including: Venezuela’s rising crude oil production and tactical hedges in place by Colombia’s Ecopetrol.

Venezuela’s Oil Production Continues To Rise

Venezuela’s crude oil production continues to rise despite US sanctions that impede it legally trading oil and refined products with the North American country. The sanctions have also complicated Venezuela’s oil trade with other countries at the request of the US or to avoid issues with Washington.

“Oil production should average 700,000 barrels per day in May 2021,” Ecoanalítica Director Alejandro Grisanti wrote 5 May 2021 in a social media post. “[Nicolas] Maduro will receive $1,200 million in May [2021] and $15,000 million in 2021,” Grisanti wrote.

Ecopetrol’s Tactical Hedges For 2021

Colombia’s state oil company Ecopetrol announced it has in place tactical hedges during the 1Q:21 for “more than 8 million barrels to mitigate the impact of the variability of prices of crude oil, refined products and intermediate refining margins,” the company announced 5 May 2021 in an official statement. “Additionally, hedges on sea transport cargo were executed for about 600,000 metric tons,” the oil producer said.

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By Piero Stewart. © Energy Analytics Institute (EAI). All Rights Reserved.