Venezuela to reduce oil production amid US export embargo pressures

Group 1: Oil Production Reduction - Venezuela has started reducing oil production due to the US export embargo, which has halted shipments and is the country's main revenue source [1] - The state-owned oil company PDVSA has requested joint ventures, including those with CNPC and Chevron, to scale back output due to rising onshore inventories and a shortage of diluents for blending heavy crude [2][3] - PDVSA has been using tankers for floating storage since late December 2025, with over 17 million barrels waiting offshore to depart [5] Group 2: Impact on Operations - Operations at Petrolera Sinovensa, Petropiar, Petroboscan, and Petromonagas are affected, with Sinovensa preparing to disconnect some well clusters due to over-accumulation of heavy crude and diluent shortages [3][4] - Petromonagas has reduced output while awaiting pipeline-provided diluents, which could challenge the interim government's efforts to secure revenue and maintain stability [4] - Venezuela's daily oil output was approximately 1.1 million barrels in November 2025, but US actions reduced exports from 950,000 barrels per day to nearly 500,000 barrels per day in December [6]