If the global oil market suddenly loses Venezuela's 2 million barrels of daily oil production, it would be "a big shock to the system," according to Dan Yergin, vice chairman of IHS Markit.
"It would certainly be a very tight market, because of course you already have production restraints by OPEC and non-OPEC," Yergin told CNBC at the Abu Dhabi Petroleum Exhibition and Conference on Tuesday.
Oil markets are increasingly worried over potential supply constraints as the economic turmoil in Venezuela deepens. Production in Venezuela has been falling and the economic difficulties have affected further investments in the sector. As the economic situation deteriorates, production might continue to fall from its maximum potential, thus limiting the availability in the market.
Venezuela, an OPEC nation and one of the biggest oil producers in the world, has conducted debt renegotiations with foreign investors since Monday. However, it is unclear whether President Nicolas Maduro will succeed in these talks.