How BANKRUPT Venezuela could ‘SHUTDOWN’ world economies as OIL CATASTROPHE looms
VENEZUELA’S bankrupt regime has been labelled the biggest risk factor to the global financial markets according to the latest monthly report from the International Energy Agency (IEA).
By DAVID DAWKINS
Express.co.uk
Thu, Mar 15, 2018
Despite Venezuela’s failing regime, the South American country boasts the world’s largest proven oil reserves but for years it has been considered a rogue member of the OPEC (Organisation of the Petroleum Exporting Countries) family.
With crude oil production steadily declining in recent years, the country is grinding to a halt as the lingering effects of an economic crisis caused by years of government mismanagement have been further compounded by a recent slump in the price of oil.
The IEA report: “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 warning follows news that crude production from OPEC countries fell to a 10-month low in February, mainly due to maintenance at a field in the United Arab Emirates and continued output declines in Venezuela.
Venezuela’s output dropped by 30,000 barrels a day to 1.68 million barrels in February and the country’s slowdown is a big part of the reason for OPEC’s stellar implementation of promises to curb production.
Venezuela is suffering from years of government mismanagement and its industry is suffering from a lack of investment while the further threat of US sanctions have sent output to the lowest since the 1980s.
Data points to a fall in output from the 14 members of OPEC of 80,000 barrels a day to 32.28 million a day in February with the lion’s share Venezuela.
The Rest…HERE
