Sputnik: No Place to Hoard! Venezuela Reportedly Selling Oil for Less Than $5 Per Barrel
In 2018, the US introduced economic sanctions against Caracas in attempt to oust President Nicolas Maduro. This development and global price-related factors had a dramatic effect on the country’s oil industry, which now has stored an excessive amount and is approaching capacity.
Venezuela has begun to sell oil for less than $5 per barrel, El Nuevo Herald revealed, citing experts in the industry familiar with the development. Meanwhile, the price of Brent crude oil was set at approximately $25 per barrel as of 27 March.
According to the experts cited by the outlet, Venezuela has been hard hit by US sanctions, the ongoing coronavirus pandemic and economic disagreements between Russia and its OPEC+ partners. Russ Dallen, managing partner of investment bank Caracas Capital Markets, told the newspaper that “nobody wants to touch” Venezuelan oil to avoid being sanctioned themselves by the Trump administration.
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WNU Editor: Even at $5/barrel there are no takers. U.S. sanctions and a global glut in oil has crippled the Venezuelan government's only major source of income.