Mexico, Venezuela oil slumps could hit U.S. supply

Falling oil production in Venezuela and Mexico, Latin America’s biggest suppliers of crude to the United States, could deepen U.S. reliance on shipments from the Middle East and Africa.

The outlook comes as a setback to the White House, which is hoping to reduce U.S. oil dependence on unstable regions


“The best Mexico and Venezuela can hope for right now is to keep their production flat, but the more likely scenario is that we will see a decline,” said Fadel Gheit, an analyst with Oppenheimer and Co. “Someone has to fill that gap, whether it is Russia, the Middle East or West Africa.”

The two countries currently provide some 25 percent of U.S. oil imports, but analysts say the region will be unlikely to boost exports to meet growing U.S. energy demand.

Reuters