Posted on 01/25/2016 5:59:57 AM PST by thackney
Venezuela's heavier oil fetches even less on international markets and is down to about $23 a barrel, near its break-even production point of about $17 to $18 a barrel.
A default in 2016 "is becoming increasingly difficult to avoid," said Barclays economist Alejandro Arreaza in a report on Venezuela this week. If oil stays at $32 per barrel, Mr. Arreaza estimated that Venezuela will need to use 90% of its oil income this year just to meet its obligations, including sovereign debt and money owed to China.
The cost of insuring Venezuelan sovereign debt has jumped in recent months, signaling a growing fear of default. It's currently 63 percentage points above the cost of insuring benchmark U.S. Treasurys, up from 35 percentage points at the end of November. That means investors are pricing in a roughly 80% chance of default in the next year.
Mr. Maduro acknowledged this week that the price drop is hitting Venezuela's main industry hard.
"How many countries of the world can sustain oil production at $22 a barrel? Few, or almost none," the president said in a national address Tuesday night. Yet he sought to calm worried investors, saying: "Venezuela has ethics, morals and commitments, first with the people and the fatherland, but also has the commitments that the republic has honored and will continue honoring."
(Excerpt) Read more at wsj.com ...
Couldn’t happen to a nicer socialist.
My guess is he links up with the Greeks and Spaniards and forms a Global Debt Cartel which will ultimately end up holding all the cards in a global economy.
Calling Bernie Sanders! Your SOCIALIST buddie needs a little advice on raising taxes and nationalizing industry.
Venezuela Says China to Give $5 Billion Oil Loan
http://www.wsj.com/articles/venezuela-says-china-to-give-5-billion-oil-loan-1441159070
Sept. 1, 2015
Support from Beijing - which also renewed a separate $5 billion loan to Venezuela earlier this year...
Didn’t Maduro lose the election? Did he thug his way back?
I remember when oil dropped to $8 bucks a barrel in the late nineties. There were coups, counter-coups, and blood in the streets in oil producing countries. When governments can’t pay salaries and payola it gets ugly.
That was for their congress, not Maduro’s election.
Venezuela’s opposition has been sworn in as the majority in the National Assembly
http://www.usnews.com/news/world/articles/2016-01-05/showdown-brews-as-venezuela-opposition-takes-over-congress
It’s the first time in 17 years that the opposition to the socialist revolution begun by the late President Hugo Chavez have controlled the legislature, and many of its leaders seemed rapt in disbelief.
But the two-thirds opposition majority won by a landslide last month, giving it unprecedented strength to challenge Maduro’s rule, was in doubt after a government-stacked Supreme Court barred four lawmakers from taking their seats at the last minute while it probes allegations of electoral fraud. As a result only 163 of 167 lawmakers were sworn in during Tuesday’s ceremony.
We may see $12 buck oil, who knows?
How much does Barky and Lurch want to give 'em?
'Cause, you know, we got to stem the tide of..., uh, er, something (except the illegal immigrant refugees) from down there.
I absolutely, positively, without a doubt...know that Barky and Lurch have a plan to funnel money into that bunch of socialist turds hands...for the chillldreeennnnn!
Does our economy get better when our competitors are winning each other. On paper I would think not. When they are our enemies I just laugh.
Who in their right mind would have loaned Venezuela money in the first place?
The World’s largest oil importer...
Venezuela is bankrupt and all are equal in poverty and misery.
Sorry for the pain on the citizens, but a complete blood-soaked meltdown is the medicine VZ needs to right itself.
When the economy collapses I wonder who will step in to fill the void. Follow the money.....
You know why they’re called leftists don’t you?
So they can remember which hand to use when the toilet paper runs out.
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