Mubasher: The International Energy Agency (IEA) expected Venezuela’s shrinking oil production to pose the largest risk to global oil markets during the coming period.

"Within the OPEC countries, the biggest risk factor is, and will likely remain, Venezuela. Without any compensatory change from other producers it is possible that the Latin American country could be the final element that tips the market decisively into deficit,” the IEA said in a report on Thursday.

In February, Venezuela’s output declined by around 52,400 barrels, marking the largest fall among oil producers and extending the recent steady decrease, despite having the world's largest oil reserves, the report highlighted. 

The IEA further projected a sharper drop in the Latin American country’s production towards 1.38 million barrels by the end of this year.

On another note, the Paris-based organization revised up its global oil demand forecasts to 99.3 million barrels per day in 2018, but warned that the recent trade measures taken by the US may weigh on demand.