Venezuela produces about 1.2 million barrels of oil day when operating normally, said the IEA. But the agency said there is a number of factors that could blunt the loss of Venezuelan oil on the global oil market.
First and foremost is the cut in production agreed to by OPEC and some non-OPEC countries, which also Equals 1
"Much of this spare capacity is made of crude oil in quality to Venezuela's exports," said the agency. "Therefore, in the event of a major loss of supply from Venezuela, the potential means of avoiding serious disruption to the oil market is theoretically at hand."
In addition, the signs of a slowdown in the global economy could cut demand for oil, according to IEA. And the trend of expanding exports from Canada and the United States could also be part of the gap.
The sanctions are having another impact on the Venezuelan oil industry, which gets most of its naphtha from the United States. Its supply of the liquid hydrocarbon mixture used for dilute crude has been cut off. Without it, Venezuela's heavy crude can't be readily transported.
Rystad Energy forecasts that some operators in Venezuela will run out of naphtha by this month.
– CNN Business' Matt Egan contributed to this story