Venezuela was bracing for a severe economic downturn as a U.S. blockade on oil exports threatened to cripple its primary revenue stream. The Trump administration's decision to target tankers carrying Venezuelan crude to Asian markets had effectively paralyzed the state oil company, PDVSA, leading to a significant drop in exports.

Internal projections compiled in December indicated that the partial blockade was expected to shutter more than 70 percent of the country's oil production this year. This would eliminate the dominant source of public revenue, pushing the nation towards economic collapse. PDVSA had been attempting to mitigate the impact by redirecting crude oil into storage tanks and using tankers as floating storage facilities.

However, this strategy was only a temporary solution. TankerTrackers, a shipping data firm, estimated in late January that Venezuela had spare storage capacity only until the end of that month. Once storage capacity was exhausted, production was expected to collapse swiftly if the blockade remained in place.

PDVSA, the state-owned oil and natural gas company, is the backbone of the Venezuelan economy. For years, oil revenues have funded government programs and sustained the country's economy. The U.S. blockade disrupted PDVSA's ability to export crude oil, its primary source of revenue, creating a severe financial crisis.

The future outlook for Venezuela's economy appeared bleak. With limited storage capacity and the U.S. blockade in effect, the country faced the prospect of a sharp decline in oil production and a corresponding collapse in government revenue. This could lead to further economic hardship for the Venezuelan people and potentially destabilize the region.