for Nicolas Maduro
More sanctions against Venezuela could be looming, which would further undermine the country’s production at a time the global market is tightening.
The risks of more oil production losses have intensified as the financial screws on Caracas continue to tighten. Deteriorating conditions in Venezuela are occurring at the same time OPEC is looking to extend its production cut and tensions throughout the Middle East are rising.
Low oil prices are impacting Chinese oil for loans deals, forcing Venezuela and Ecuador to ask for restructured agreements as they remain mired in debt and strapped for cash.
While headlines about Venezuela nearing a default have appeared for more than a year now, market sentiment regarding Venezuela’s ability to weather the oil price downturn has taken a turn for the worse as of late.
Venezuela is set to vote on parliamentary elections on December 6, a possible turning point that could create the first major cracks in nearly two decades of uncontested Chavismo rule. A perfect storm is hitting Venezuelan President Nicolas Maduro all at once, with low oil prices at the center of the turbulence.