The rationale was that, with that extra cash, YPF could finance its production even with reduced oil prices. Oil production in VenezuelaWhile Venezuela holds the world’s largest proven oil reserves (306 billion barrels as of 2026), its impact on global prices could be limited, some analysts posit. First, decades of mismanagement and U.S. sanctions have deteriorated Venezuela’s oil infrastructure. “Upside risks to Venezuela’s oil production will weigh on oil prices in the long term, but in the near term, prices will be little affected by a temporary loss or gain in production levels,” said BMI. “Stabilizing Venezuela is a major challenge, just as complicated as recovering its oil production after five years of decline and deterioration of infrastructure,” PxQ said.

Source: Bueno Aires Herald January 10, 2026 14:51 UTC