EOG Resources says oversupply, higher Venezuela output weighing on shale prices

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By Pranav Mathur

Jan 7 (Reuters) - EOG Resources' EOG.N finance chief Ann Janssen said on Wednesday oversupply and potentially higher production from Venezuela are pushing oil prices down, a trend that is likely to persist for several more quarters.

Brent crude futures LCOc1 were down about 0.6% at $60.30 a barrel, as investors reacted to U.S. President Donald Trump's announcement that the country had reached an agreement to import up to $2 billion worth of Venezuelan crude, a move expected to boost supplies to the world's largest oil consumer.

Over the weekend, Trump announced he was putting Venezuela under temporary American control after U.S. forces ousted President Nicolas Maduro, unlocking its vast oil reserves.

Raising crude output from Venezuela is a top objective for Trump, who is scheduled to meet with the heads of major oil companies at the White House on Friday, Reuters reported on Wednesday citing sources.

Janssen, speaking at the Goldman Sachs Energy, CleanTech and Utilities Conference, also said the ongoing buildout of liquefied natural gas infrastructure could eventually lead to oversupply and impact natural gas prices.

Global demand for LNG has surged since Russia's invasion of Ukraine upended gas markets in 2022, driving buyers in Europe and Asia to lock in long-term supply deals with U.S. exporters.

Janssen said the U.S. shale producer expects to spend about $6.5 billion in capital investments in 2026.

(Reporting by Katha Kalia and Pranav Mathur in Bengaluru; Editing by Shilpi Majumdar)

((Katha.Kalia@thomsonreuters.com))