The fact that Nigeria is considering prepayment deals with traders these deals is significant. It reflects how countries that are highly dependent on oil income are taking extraordinary measures to maintain stability while oil prices are relatively low.
Stacking PDVSA with military officials may help President Maduro avert unrest in the short run, but it will likely accelerate the deterioration of the state oil company.
When producers that are inherently prone to conflict and resource nationalism lose supply, output will most likely not return to previous levels.
There’s little question the global market will lose more production from Venezuela in the coming months and years. The country's crude output is at risk of falling to as low as 1.2 million barrels per day.
Here are four charts that illustrate the links between petrostate activities, U.S. foreign policy interests, and oil supply security.