Re: Venezuela hit by new nationwide powercut for more than three days
Please take a look here: https://www.nasdaq.com/markets/crude-oil-brent.aspx
The oil prices have already recovered and surprisingly it is having no positive impact on the Venezuelan economy. If I am not wrong, Venezuela earns around $140 million every day from the exports of crude (at this price).
The oil prices have already recovered and surprisingly it is having no positive impact on the Venezuelan economy. If I am not wrong, Venezuela earns around $140 million every day from the exports of crude (at this price).
1) That's Brent oil.
https://oilprice.com/oil-price-charts
Merey oil price is at 55$. (heavy oil , needs more refining).
2) Oil production in Venezuela has plummeted to a little more over 1 million barrels a day, that's 55 million compared to your numbers of 140. 1/3
During Chavez's era oil was at over 100 $ at production at 2.8 million barrels, that's six times the income.
Oil can recover but when you need to export it half the globe away and your production is dropping like a stone, it matters less and less.
And let's do a bit more of math.
Let's assume the cost per barrel is 20$ and you export a million barrels a day.
If you sell at 50$ you have a profit of 30 million.
If you sell at double the price, 100$ you have a profit of 80 million, (nearly triple)
So, in reality, the difference is enormous and hard to find anything to compensate.
This is debatable. If Maduro leaves and there's a change in the govt, it's very likely that the new govt (if it isn't pro-chavez/maduro) will receive external help -financially- from the World Bank[1], the IMF, and I wouldn't discard foreign investors. Also, there's no doubt that humanitarian help will finally enter the country.
So, I do think that if Maduro resigns (along with his cabinet), things can change for the better. Sure, things won't get fixed overnight, but it'll help stop the economic collapse and the deteriorating lifestyle of venezuelans, at least in a year or two.
1. https://www.reuters.com/article/us-imf-g20-worldbank-venezuela-idUSKBN17L1IG
So, I do think that if Maduro resigns (along with his cabinet), things can change for the better. Sure, things won't get fixed overnight, but it'll help stop the economic collapse and the deteriorating lifestyle of venezuelans, at least in a year or two.
1. https://www.reuters.com/article/us-imf-g20-worldbank-venezuela-idUSKBN17L1IG
My country was fword after the Warsaw pact fall.
Although we were also fword for about ten years before it finally bit the dust.
It took us about 10 years of crisis and then stagnation to finally get going and try to catch up with western Europe.
But take a look at Romania, Bulgaria or Moldova.
30 years since the fall of communism, 10 years in the EU, free trade, EU funding, ....and close to nothing.
No, just throwing Maduro out won't solve the problems, it is indeed a necessary step but it's just the first out of a hundred or so.
Furthermore Venezuela COULD LIVE WITHOUT OIL if it wanted, you have no idea how wrong you are by making that statement.
Yeah, because living without income from natural resources has worked so fine for evey country in South America...oh wait!
The only economy that is not bleeding right now is Chile, that relies on its immense copper exports
Anyhow, we should return to talking about cryptos and Venezuela