Peak Oil is You
Donate Bitcoins ;-) or Paypal :-)
Page added on November 1, 2015
Venezuela Oil Price Tumbles Below $40
|
Venezuela’s weekly oil basket price fell further back below $40 as oil prices around the world slipped and as the crucial U.S. market remained well supplied. According to figures released by the Venezuela Ministry of Energy and Petroleum, the average price of Venezuelan crude sold by Petroleos de Venezuela S.A. (PDVSA) during the week ending October 30 was $38.64, down 83 cents from the previous week’s $39.47, when it had tumbled $2.02. WTI in New York averaged $44.76 — down $1.24 — for the week, while Brent crude traded in London averaged $48.04 — down 70 cents from the previous week. According to Venezuelan government figures, the average price in 2015 for Venezuela’s mix of heavy and medium crude is now $46.93 for the year. Venezuela’s average oil price for 2014 was $88.42, down from 2013’s $98.08, 2012’s $103.42 and 2011’s $101.06, but higher than 2010’s $72.43, and much higher than 2009’s average price of $57.01, which the current average is well below. In 2014, WTI averaged $93.06 while Brent averaged $99.61. So far this year, Venezuela’s oil basket hit its highest price of $57.00 during the week ending May 15. Venezuela set its 2015 low of $36.48 in the final week in August. Historically, Venezuela’s basket set its highest weekly average ever on July 18, 2008, when it hit $126.46 before economies around the world began crashing under the weight of expensive oil and disastrous sub-prime debt. By January of 2009, Venezuela’s oil basket had fallen to a low of $27.10 a barrel. The United States is the largest importer of Venezuela’s oil exports. According to the US Department of Energy, Venezuela was the fourth-largest supplier of imported crude oil and petroleum products to the United States behind Canada, Saudi Arabia, and Mexico. U.S. imports from Venezuela have been on an overall decline in recent years. In 2014, the United States imported an average of 793,000 barrels per day of crude oil and petroleum products from Venezuela, a decline of 49% from a decade ago.
While U.S. imports of primarily crude oil from Venezuela have been on the decline, U.S. exports of petroleum products to Venezuela have increased largely because of Venezuela’s tight finances that leave it unable to invest and maintain its own domestic refineries. A decade ago, the United States exported 7,000 barrels per day to Venezuela. In 2013, the United States sent Venezuela 84,000 barrels per day of petroleum products, primarily methyl tertiary butyl ether (MTBE), intended for blending in gasoline, motor gasoline, and distillate fuel oil. Oil is the main export of Venezuela and provides most of the country’s foreign currency. The U.S. Energy Information Administration estimates that in 2013 net exports from Venezuela totaled nearly 1.7 million barrels per day of crude oil and petroleum products, a significant decrease since the peak of 3.1 million barrels per day in 1997. According to the Oil & Gas Journal (OGJ), in the beginning of 2014, Venezuela had nearly 298 billion barrels of proved oil reserves, the largest in the world. The next largest proved oil reserves are in Saudi Arabia with 266 billion barrels and Canada with 173 billion barrels.
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Venezuela sends a large share of its oil exports to the United States because of the proximity and the operation of sophisticated U.S. Gulf Coast refineries specifically designed to handle heavy Venezuelan crude.
0.53 1.14% 
7 Comments on "Venezuela Oil Price Tumbles Below $40"
Rodster on Mon, 2nd Nov 2015 9:06 am
This isn’t just a Venezuela problem. Many of the major and smaller eCONomies use oil exports to fund their government programs. So the lower the prices go the more pressure it puts on government budgets.
jack on Mon, 2nd Nov 2015 12:11 pm
Please, This is what happens when Venezuela has a bunch of fools running gubmint. When gas prices just a couple years ago were 20 cents a gallon. Yeah do the math. Watch your economy tank! ahahah.
Spec on Mon, 2nd Nov 2015 12:16 pm
I’m surprised Venezuela hasn’t collapsed yet.
Byror on Mon, 2nd Nov 2015 1:37 pm
Couldn’t happen to a more deserving bunch of socialists.Coming soon to the United States, brought to you by Comrade Barry, Comrade Bernie, Low Information Voters, Useful Idiots and freeloaders looking for more free government handouts.
Lynn Blystone on Mon, 2nd Nov 2015 4:05 pm
According to an article in the October 5, 2015 issue of the Oil&Gas Journal, Venezela needs an oil price of $160/barrel to balance its national budget. Only an international calamity could produce such a price.
makati1 on Mon, 2nd Nov 2015 6:37 pm
Rodster, there is a lot of propaganda repeated in the comments following yours. No real facts.
I wonder what the US would do if all of its oil imports disappeared tomorrow? OUCH! Crash and burn would be my guess. Same as what is happening in Venezuela today. And the US is more Socialist than you might think.
“…Ultimately, we are forced to conclude that redistributive social spending in the US is indeed different from many other countries. But the overall magnitude is actually greater (both proportionally and in absolute terms) in the US than in almost all other countries measured. One can argue that the way that the wealth is redistributed through public policy in the US is “wrong” or “suboptimal.” But, to argue that there is less redistribution as a result of public policy in the US than elsewhere is simply wrong.”
https://mises.org/blog/social-expenditures-us-are-higher-all-other-oecd-countries-except-france
It is second only to France in government money going to the serfs.
J. Aguilar-Taylor on Tue, 3rd Nov 2015 12:59 am
NICOLAS MADURO is a dictator and until now 50 or more people have died and lot opposition leaders are in jail and some are dead.
Because the government doesn’t accept the protests from the students and the
rest of the country that began Feb 12, 2014 until now. The national guard and the civil
armed forces (criminal that work for the government) are killing,
torturing and attacking people for saying the truth. They have been in power
for the last 16 years lying and staying as rich and powerful as they can,
giving away our resources to Cuba, Ecuador, Nicaragua, Argentina, and Bolivia, meanwhile
our rich country is poorest than ever. There is no state of law, there is no
separation of public power and there is scarcity of basic things as milk,
butter, bread, oil, chicken, etc. and what is even worse they are
implementing Cuba’s policy, for instance, one chicken per week. Besides the
Cuban militia is infiltrated in our armed forces and other institutions, such
as hospitals, Passport and ID offices, airports, etc. Now Maduro and Diosdado also have inside Venezuela terrorist as Hezbollah, Al Qaida, ETA, FARC, and ISIS. Also we have very limited
access to TV and radio channels as more than 90% belong to the government,
social media is also at risk, as they shut it down when the most brutal attacks
against civilians are occurring. Finally more people have lost their
fear and are beginning to react, to speak up and people around the world
are beginning to listen. We don’t want any international intervention, all we
are looking for is to let the world know what we are going through and ask them
to raise their voices. The job is ours to finish with this terror regime.
Google it and see videos and photos that support my description.
MADURO CAN NOT BE VENEZUELAN PRESIDENT BECAUSE HE WAS BORN IN COLOMBIA AND THE ASSASSIN NARCS TERRORIST OF RAUL AND FIDEL CASTRO HELPED HIM TO STOLE THE PRESIDENTIAL ELECTION IN VENEZUELA SO THE CASTRO CAN STOLE THE OIL FROM VENEZUELA. MADURO MUST RESIGN RIGHT NOW. It’s really sad to see how many leaders of nations like Rafael Correa Ecuador, Evo Morales Bolivia, Daniel Ortega Nicaragua, Cristina Fernandez Argentina, Jose Mujica Uruguay, Dilman Roseffel Brasil, Michelle Bachelet Chile, Danilo Medina Republica Dominicana, Sanchez Cese El Salvador and the evil narcs terrorist dictator Raul Castro of Cuba choose oil over people’s lives what a shame humans have become such little #$%$ on earth. you are all correct about Venezuela having huge amounts of oil. My plan would be for the UN or the US or have a military coup or some plan to overthrow the government. Once this happens, i would immediately start bringing huge amounts of food so people would feel the changed in front of them. Venezuela could make people RICH even AMERICANS! The same thing happened in the 80s with. THE COLECTIVOS–MADURO’S DEATH SQUAD THAT SHOT protesters TO DEATH. SHAME ON YOU MADURO. YOU AND YOUR CRONIES WILL PAY AT THE END. The fraud elected Buffoon “Maduro” and same corrupt government. Things will continue to get worse until the government is overhauled. Maduro and Diosdado became Venezuela and Latin America in a narcs state where the transporter tons of drug to EEUU, Canada and Europe.