Venezuelan Oil Price in 2023

The price of Venezuelan oil (Merey blend, the Venezuelan reference within the OPEC basket) averaged $57.25 per barrel in March 2023, a 7.6% drop compared to the previous month, according to OPEC data. This is the lowest price since December 2021, while the average for the first quarter of the year stands at $60.19, lower than the $74.72 it marked in the same period last year.

Since the Russian invasion of Ukraine in March 2022, crude prices saw a sharp increase, but since June, the trend has been downward. In that month, Venezuelan oil reached its highest value of the year ($92.25), and since then, it has lost 38%.

The Venezuelan Ministry of Oil stopped reporting the price of oil in the second quarter of 2020 when it collapsed amid the crisis caused in the market by the pandemic. Until then, the weekly average was published.

These figures can now be obtained from the monthly report published by OPEC, whose information comes directly from Pdvsa or the Ministry of Oil. However, the exact figures of how much the State earns from oil remain imprecise, as the Maduro government claims that due to sanctions, they must sell at prices below the market.

According to Vice President Delcy Rodríguez, the excessive costs and discounts represent around 25% of the price of oil. The official reported this figure in late March 2022 while presenting the Memory and Account of the ministers.

“Additionally, once the payment is received, additional costs must be paid to move the money to Venezuela. As a result of the blockade, these payments ended up costing up to 15% of the gross value to mobilize,” she added.

US sanctions significantly contributed to the sharp decline in Venezuelan oil production. Nonetheless, the industry has been recovering since 2021.