Plagued by triple-digit inflation, political turmoil and a recession, OPEC member Venezuela has scaled back an 11-year program that allows its allies in the Caribbean and Central America to buy its oil at subsidized prices.
Latin America’s largest oil exporter has been favoring shipments to Asia and the U.S. while trimming sales to Petrocaribe, a program in which Petroleos de Venezuela SA, the state oil company, sells oil to members under low-cost financing, Mara Roberts, a New York-based analyst at BMI Research, said in an e-mail.
“Petrocaribe’s terms are unprofitable, so PDVSA is making partners such as China, India and the U.S. a clear priority,” Roberts said. “Distributing subsidies is not a good idea for cash-strapped PDVSA.”
The Petrocaribe program, created in 2005, was seen by many as an attempt by the late President Hugo Chavez to make Venezuela a regional power. Exports to members have dwindled over the years. Cuba, the main Petrocaribe buyer, is importing 83,500 barrels a day this year from Venezuela, down 20 percent from last year, BMI data shows.
rockman on Sat, 24th Sep 2016 7:12 pm
Wow! Who would have thought that a country unable to continue subsidizing fossil fuel consumption at the same level for it’s citizens would cut those subsidies to foreigners?
I’m shocked, shocked I say, to hear this.
curlyq3 on Sat, 24th Sep 2016 8:29 pm
Howdy from red rock country … when conditions of scarce resources develop, humanity will begin to thin it’s ranks … organized and sanctioned murder has been the population control method throughout time … it is a lot easier to participate in this ritual if you can learn to hate your competitors for the scarce resources … your family will always come first when hunger strikes.
curlyq3