US, WASHINGTON (ORDO NEWS) — The oil industry of the Bolivarian Republic was affected by US sanctions, the disruption of the OPEC + deal, and the coronavirus pandemic. As a result, Caracas is forced to offer raw materials at “surprisingly low” costs.
It is noted that there are few buyers for Venezuelan Merey oil, since in the case of a transaction, the second side automatically falls under Washington sanctions.
Because of this, in the Latin American country, oil storage facilities are almost completely full, the authorities were forced to close a number of wells, reduce production to 450 thousand barrels per day and set a record low oil price to get rid of its surplus.
Oil prices fell almost two-fold amid the collapse of the OPEC + deal, which happened after Russia refused to support an additional reduction in production.
Meanwhile, in the forecast of the rating agency Moody’s, Russia was named a producing country, which is better prepared than its competitors for economic shocks due to cheap oil.
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