New Delhi, Jan. 5 -- Venezuela's state-run oil producer PDVSA has begun cutting crude production after rapidly running out of storage capacity, as a sweeping US oil blockade has effectively brought exports to a halt. The curbs add to mounting economic and political pressure on Caracas at a moment of acute instability, following the detention of President Nicolas Maduro by US forces and escalating threats of further American military action from Donald Trump.

According to industry sources cited by Reuters, PDVSA has been compelled to shut oilfields and entire well clusters as onshore tanks fill and supplies of diluents-essential for blending Venezuela's extra-heavy crude-run critically low.

The company has asked several joint ventures to...