Friday, October 17, 2014

Collapse In Global Oil Prices Is Raising Fears That Venezuela Will Default On It's International Debt Obligations

Venezuela Goes From Bad to Worse as Oil Prices Plummets -- Bloomberg

Since becoming Venezuela’s president 18 months ago, Nicolas Maduro has contended with chronic shortages of everything from toothpaste to medicine, the world’s fastest inflation and sinking foreign reserves.

His predicament is about to get worse. Prices for Venezuela’s oil, which accounts for 95 percent of the nation’s exports, are tumbling to a four-year low and threatening to choke off the export dollars the country needs to pay its debts.

“It’s a direct hit on tax revenues,” Lars Christensen, chief emerging-markets economist at Danske Bank A/S, said by telephone from Copenhagen. “There is nothing good to say about the state of Venezuela’s economy, and this isn’t helping.”

Read more ....

More News On The Impact Of Falling Oil Prices On Venezuela

Falling Oil Prices Could Push Venezuela Over The Edge -- Zero Hedge
Oil price fall triggers fears of Venezuela default -- Financial Times
Falling Oil Prices Raise Worries of Venezuela Default, Crisis -- Latin America News Dispatch
Falling Oil Prices Could Push Venezuela Over The Edge -- Oil Price
Oil slide puts Venezuela's Maduro under pressure for reforms -- Reuters
Oil prices free fall: Why Venezuela stands to lose the most -- Nick Cunningham, CSM

My Comment: No surprise on this one .... Venezuela blames U.S for global oil price slump (Xinhuanet).

1 comment:

Alex said...

Its funny how Maduro says the U.S. is flooding the market to hurt Russia, who has an oil dependent economy, but conveniently avoids mentioning his own countries weakness.