Venezuela to Cut Oil Output

Venezuela's state-run oil company PDVSA has begun cutting crude production because it is running out of storage capacity due to an ongoing U.S. oil blockade that has reduced exports to zero, piling more pressure on an interim government trying to hang onto power in the face of U.S. threats of more military action.

Caracas is in political crisis under an interim government after President Nicolas Maduro and his wife were captured by U.S. forces on Saturday.

The OPEC country's oil exports, its main source of revenue, are now at a standstill following a U.S. blockade on tankers under sanctions and the seizure of two oil cargoes last month.

Chevron's cargoes bound for the U.S. had been an exception, continuing to move, because the company has a license from Washington for its operations. But even those have stopped since Thursday, shipping data showed on Sunday.

As part of his announcement of Maduro's detention and a government transition overseen by the U.S., President Donald Trump said on Saturday that an "oil embargo" on the country was in full force.

PDVSA's move includes shutting down oilfields or well clusters as onshore stocks mount and the company runs out of diluents to blend