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.
As the American media found out, Trump personally approved the intention of Saudi Arabia to increase production, but asked to ensure that this did not harm the shale industry.
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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