OilPrice.com: Putin Could Cut His Loss As Venezuelan Oil Output Nosedives
Venezuela’s oil production held up last month, but appears to be falling off a cliff once again.
Output in Venezuela rebounded a bit in April, following the horrific electricity blackouts that rocked the country the month before. Production rose to 768,000 bpd in April, up a modest 28,000 bpd, ending a long string of monthly losses. The data would appear to be positive for Venezuelan President Nicolas Maduro, who managed to fend off a coup attempt in late April and early May.
However, the uptick in production may only amount to a temporary reprieve, with outside pressure, led by U.S. sanctions, continuing to choke the country.
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WNU Editor: No one is buying Venezuelan oil. And with limited storage facilities and no tankers showing up to pick up any oil, production facilities will need to shut down. This is what is going to end the Maduro regime. No oil means no money. And with no money Venezuela's importance to countries like Russia or Cuba becomes limited to a political one, not an economic one. But the real impact will be in Venezuela itself. The government will no longer be able to pay its important employees and supporters, and if the government cannot support its base it will be only a question of time before their loyalty will shift to the opposition. I give it another year (if not sooner) before that happens.
5 comments:
Maduro will sell military basing rights to China to keep him propped up. He'll sell basing for naval and aircraft and hope the revenues are enough to keep him in power. Then play for time to find clever ways to export oil.
With the USA and China locked in a long term trade battle, the gloves will come off on their global rivalry.
Perhaps when Iran shuts off a few oil shipping countries, things in the oil business will begin to look up for Venezuela once more.
I agree this might be a logical move at first - and China would certainly love that - but I'm quite sure that on the first sign of such negotiations the gloves will indeed come off, but also by the Trump administration. They know the significance of this and I'm sure with any strategic sense this is the red line that will trigger immediate and reliable removal of Maduro. He won't even see it coming.
First decent comment, Bob.
Toast to you. .but still people would be hesitant to buy due to safety concerns (the market is flooded with the product so why buy in a potential war zone and on top get a bad wrap/penalty and cannot access the US/biggest market in the world?)
So yeah the people who still buy are mostly ideologically/politically driven and already on the list, like Russia
"First decent comment, Bob."
ie: it is good because I in my wisdom agree with it
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