Venezuela was bracing for a severe economic downturn as a U.S. blockade on its oil exports threatened to cripple the nation's primary revenue stream. The Trump administration's decision to target tankers carrying Venezuelan crude to Asian markets had already paralyzed the state oil company's exports, setting the stage for a potential collapse in production.

Internal projections compiled in December indicated that the partial U.S. blockade was expected to shutter over 70% of Venezuela's oil production in 2024. This would effectively eliminate the country's dominant source of public revenue, pushing the already struggling economy to the brink.

The impact on the global oil market was anticipated to be significant, potentially leading to price volatility as supply chains were disrupted. PDVSA, Venezuela's state oil company, had been attempting to mitigate the effects of the blockade by redirecting crude oil into storage tanks and using tankers as floating storage facilities. However, this strategy was viewed as a temporary fix.

TankerTrackers, a shipping data firm, estimated that Venezuela had sufficient spare storage capacity only until the end of January. Once this capacity was exhausted, production was expected to decline rapidly.

PDVSA, a cornerstone of the Venezuelan economy, faced an existential threat. The company's inability to export crude oil would not only impact its financial performance but also jeopardize its long-term viability. The future outlook for Venezuela's economy appeared bleak, contingent on the duration and severity of the U.S. blockade. Without a swift resolution, the nation faced the prospect of a deep and protracted economic crisis.