Despite the political rifts between Venezuela and the United States, U.S. refiners have in the past been some of the biggest buyers of Venezuelan crude.
The new round of sanctions targeting Iran's oil sector were put in action on November 4, 2018.
"In quantity terms, in 2019, the United States alone will grow its crude oil production by more than Venezuela's current output".
U.S. West Texas Intermediate (WTI) crude oil futures were at $53.66 per barrel at 0530 GMT, up 56 cents, or 1.1 percent, from their last close, Reuters said.
International Brent crude oil futures had yet to trade.
Traders are bracing for increasing supplies at Cushing, Oklahoma, the delivery point for benchmark US crude futures, as refinery outages could create a supply backlog that will add to inventories that are already at the highest in more than a year.
"In quantity terms, in 2019 the U.S. alone will grow its crude oil production by more than Venezuela's current output", the agency wrote in its Oil Market Report published Wednesday. Crude prices have since recovered roughly 20 percent from the annual lows of last December, bolstered primarily by the decision to cut supplies.
None of these options are appealing, and all of them are likely to result in higher costs for refined products, particularly the middle distillates such as diesel and jet fuel that are produced in greater quantities from heavy crudes.More news: Irving day-to-day with knee sprain
The Organization of Petroleum Exporting Countries is cutting output to prevent a worldwide surplus, while member nation Iran is being hit by American sanctions. This would help the oil-rich, but cash-poor, country dilute its extra heavy oil for export around the world. "China trade tensions and geopolitical uncertainty".
Hassan Rouhani's government would face even a much worse scenario if the USA decides to bring Iran's oil exports down to zero.
"In quantity terms, in 2019, the USA alone will grow its crude oil production by more than Venezuela's current output". "In quality terms, it is more complicated".
Bank of America also warned of a "significant slowing" in global growth, adding that it expects Brent and WTI to average 70 USA dollars and 59 US dollars a barrel respectively in 2019 and 65 US dollars and 60 US dollars in 2020.
World oil markets have been on a rollercoaster ride in recent months, with the OPEC+ group agreeing to cut back production again from January in order to reverse a slump in oil prices on abundant production and worries about slower global growth.
OPEC Secretary General Mohammad Barkindo urged members of the producer group and its 10 allies "to remain firm in achieving" their output cut goals.
OPEC is partnering with 10 non-member nations, including Russian Federation, to keep 1.2 million bpd off the market.
Oil prices have struggled to rise amidst an oversupplied market.