Venezuela’s current state of affairs is a prime example of why it’s important for economies of both producers and consumers to reduce dependence on oil. The meltdown in Caracas is a precarious situation for the U.S., given that Venezuela is its number three crude oil supplier.
The economic calamity in Venezuela is having a ripple effect on the oil market, altering long-standing trade flows and hollowing out the country’s oil-producing assets.
Even as ExxonMobil sharply increases spending on shale this year, it has also prioritized one major project in particular—a drilling prospect off the coast of Guyana.
Between now and OPEC's next meeting in May, much more must be done in order to make sure the cuts are fairly distributed, slackers come around, and non-OPEC members stick to the deal.
With the beginning of production, Ecuador has added 20,000 b/d to its output, with plans to raise this to 40,000 b/d by year-end, all at production costs said to be under $12 per barrel.
OPEC has learned in recent months that it doesn't even have to cut production to boost oil prices.
Matt Smith is Director of Commodity Research at ClipperData, a company that tracks global cargo flows of crude and products. He speaks to The Fuse about data transparency, trade flows, and recent price trends.
Venezuela’s opposition called for nationwide protest today as the National Electoral Council (CNE) missed yesterday’s deadline to verify signatures provided by the opposition Democratic Unity Roundtable (MUD) and announce whether it could move forward with a recall push against embattled president Nicolás Maduro.
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.
Weak oil and gas prices have been a boon for consumers and have fostered overdue reforms in producer countries in the Americas, but reduced investment on the supply side and the economic meltdown in Venezuela raise a number of open-ended questions about regional stability and security going forward.