Venezuela To Accept More Crude Oil From Russia As Production Falters

in #oil7 years ago

Content adapted from this Zerohedge.com article : Source


Is the Petro token on life-support already?

Caracas is struggling to provide enough crude to its refineries.

Russian Urals crude is now entering Venezuela at a rate of 335,000 barrels per day to supply PDVSA’s refinery in Curacao.

So far this year, Caracas has purchased 3 million barrels of Urals crude from Swiss trader Glencore.

Four tankers are scheduled to reach Curacao from Russian ports just this month, trading sources said.

OPEC cited Venesuela as having the largest monthly decline of any of the member states, something Venezuela strongly denies. OPEC pegged it at a 47,000 bpd decrease while Venezuela claims it had a 148,000 bpd increase.

Last week, a report by Reuters quoted internal documents that said PDVSA had restarted imports to its Isla Curacao facility after a seven-month hiatus as Venezuela tries to staunch the bleeding of its dwindling fuel output.

The credit ratings agency Moody’s sees “a negative feedback loop between declining production across all economic sectors, accelerating scarcity of hard currency, and an economic policy mix defined by price controls and forced discounting that exacerbate supply shortages and hyperinflation.”

This news could be seen as bearish for the Petro.

Non-adapted content from this Zerohedge.com article : Source

Disclaimer : Account @zer0hedge is not affiliated with ZeroHedge.com.

I read ZeroHedge multiple times a day to find the best articles and reformat them for Steemit. I appreciate the upvotes but consider following the account and resteeming the articles that you think deserve attention instead. Thank you!

Head over to ZeroHedge.com for a more complete news coverage about what affect the economy, geopolitics & cryptocurrencies.

Sort:  

What a crazy situation having the country with the largest known oil reserves in the world importing crude. I wonder what kind of payment/collateral they are giving to glencore for these shipments.
It is nuts how long these guys can keep hold of this fine country

It's unbelievable for a country like Venezuela to go through this scarcity in oil production. It tops the countries with the highest oil reserves.
Russia is a strong ally which they can look up to whenever they have challenges with the economy. But this won't last long.
Venezuela needs to get back up and go back to the drawing board on how to get back in the state of producing oil they were some years back. They need to start with cleaning up the political crisis a scene they can use to win the hearts of powerful countries that can support them financially.

It seems the leadership in VZ is intent on driving that country into the ground. It is no wonder crypto is faring so well in spite of being outlawed. The bolivar is worthless. Yet that government feels that creating a crypto is the answer?

Well if at first you do not succeed....drive another currency into the ground.

As a Venezuelan I can tell you this petro crypto is probably a scam. Our corrupt government doesn’t care about providing or creating anything positive, they only care about hiding the money they stole and trying to survive the witch hunting they deserve.

I really don’t recommend using this crypto, it’s probably a way for them to hide their illegal money.

They drilled the bolivar into the ground...what makes anyone think they wont do the same with the crypto.

I feel for all of you down there...keep on Steemin and get others down there too...it is a way to bypass the corrupt regime.

We will have to see how they launch this system because knowing how it is all there will be a bureaucracy (with all its consequences) behind it as the registry of those who mine cryptocurrencies or something like that were invented recently. Another thing that I do not understand very well is if it will be a cryptocurrency to be used, be stored in a local wallet, etc. because if they limit it, there will be a lot of distrust. Another thing that worries me (because it can fall seized people) is that they inflate the price of the Petro artificially and when people have bought, simply explode the bubble.

I am intrigued by the oil market...not as an investor or speculator but from a technological standpoint. The headwinds for oil are blowing. Countries are adopting mandates to cut fossil fuel usage and embrace renewables. This has to have a major impact on those countries that have economies based upon oil.

The only one that I saw change their approach are the Saudis. They are looking to pump oil as much as they can so they can dump Aramco on the open market in an IPO. After that, they are seeking to become a renewable haven.

Against the political stability in Venezuela and the prevention of strike
Russia is exploiting the phenolic oil
According to statistics, Russia
Sells about 225 thousand barrels of umoya
Of Venezuelan oil
This is a very large number

I'd really like to here Bernie Sander's explanation of the way that socialism works.

So far this year, Caracas has purchased 3 million barrels of Urals crude from Swiss trader Glencore.

Four tankers are scheduled to reach Curacao from Russian ports just this month, trading sources said.

Venezuela produces oil yet imports oil from the opposite side of the planet, And Venezuela's biggest export now seems to be its citizens.

https://www.wsj.com/articles/venezuelas-misery-fuels-migration-on-epic-…

Socialists are supposed to b really, really smart. How does this make sense?

Russia's largest oil company Rosneft offers money for oil shipments from Venezuela, which has the largest oil reserves in the world, meaning Ross Oil plays a role in the sale of Venezuelan oil.

It is reported that Russia is selling about 225 thousand barrels per day of Venezuelan oil, accounting for 13% of the country's total exports. Russian money plays a crucial role in helping Venezuelan President Nicolas Maduro's government meet its commitments and prevent a political coup in the country, the source said.

The Maduro administration needs Russian funds to finance all of its expenses, from bond interest, to financing the import of food and medicine.

After the fall of oil prices since the middle of 2014, Venezuela has suffered a political and economic disaster. Inflation has reached more than 700%, and GDP has fallen by more than a third from 2013 levels.

It's very difficult believe how the situation of Venezuela has been afected for all this issues, that has had a serious impact on the economy of this country, that will last for many years even if we change government

We Venezuelans are involved in a way to bankruptcy, with the main error of being dependent on the export of oil that increasingly loses it's value in world trade!

muy bueno ya que este país por los momentos que estamos pasando estamos quedando el mas rico y pobre de latinoamericano, explico porque porque somos el tercer país mas rico en petroleo del mundo y el mas pobre de producion de consumo y ecportacion. que hacemos con esa potensi tangrande respardando nuestro petroleo ya estamos perdiendo autonomia. necesitamos salir de ese hueco donde estamo no podemos permitir que toquemos fondo ya que este gobierno esta jugando con nuestros recurso y de paso poniendo en riesgo otra perdida respaldando el famoso PETROMONEDA CON RECURSOS DE LA NACIÓN, ya vasta de esperar que otro mastique para uno comer.

wow that's would be great to provide more crude to refineries industries. it would boost up
Venezuela financially and Russia will also be able to get some benefits.

no viejo tienes que ver el tras fondo, que sabes tu si este gobierno de mierda esta vendiendo el pais esta haciendo lo que ellos decia con la cuarta republica con usa y esta vez es con rusia, mientas que estemos esta miseria socialismo no van a vender como esclavo a china.

the most beautiful industrial city ever on earth

I think that Russia couldn't possibly become another Empire because they won't fight hard anywhere besides Russia. You can't be that way and become an Empire, it just doesn't work.

Good news as Venezuela is going to enjoy more supply of crude oil

to bad the country is ripped with socialism. people starving eating cats and dogs to stay alive main stream media won't cover that.

One of the reason why Venezuela has been suffering is because of their heavy dependence on oil and gas... I feel sorry for this beautiful country and I hope they will be out of the current crisis.. and soon...

It scares me that socialism is so popular with millennials.

In Venezuela we can see the consequences of the embezzlement that the government has done to the nation, because of its bad policies and corruption, the lack of maintenance of oil wells, and the lack of trained personnel, since most of the professionals have been gone from our country, in search of new opportunities.

Bueno, parece increíble que mientras el gobierno dice que la producción en la empresa estatal crece, una institución responsable como la OPEP saca a la luz cifras totalmente opuestas, eso lleva a una pregunta a quien creer? Bueno si por lógica se trata debería ser a la OPEP ya que es una institución que maneja una serie de datos suministrados por diversas fuentes, a mi juicio y sencilla opinión, el declive en la empresa comenzó cuando se establece como empresa del estado, dentro de esta empresa todo se fue deteriorando lo que a mi juicio esta influyendo en su actividad productiva, una de las cosas que afecto a esta empresa en un momento es la corrupción a un lado de el bajo valor del crudo, no se puede negar que esta inflación también afecta a PDVSA ya que esta situación afecta a toda la población. Puedo pensar que el mas grande error se sigue cometiendo en mi país, que seria tomar los recursos limitados que posee ahora PDVSA para hacer política, en vez de ser utilizados para fortalecer la empresa mas importante de la nación la única que produce divisas a los venezolanos. Este es un tema muy amplio en el cual también es necesario presentar algún tipo de pruebas pero simplemente doy mi punto de vista ante esta situación.

what happiness is traveling :(

Venezuelans can not dream of traveling to other countries thanks to our president :(

Learn more about teaching English in Venesuela https://americantesol.com/teach-in-Venezuela.htm