Oil production in Venezuela, which is the leader on stocks of raw materials, fell to a 75-year low and US sanctions continue to harm the country’s exports. About it writes Bloomberg.
The state oil company of the country, Petroleos de Venezuela SA (PDVSA) has reduced its estimate of the production to 374 thousand barrels per day, that is, to the level of 1945. The decrease is the result of US sanctions that have spooked most global buyers of Venezuelan oil. Because of this, the ally of Russia was faced with overflow storage and the exploration program across the country.
The export of crude oil from Venezuela fell in may to its lowest figures since 1947, writes TASS. On a monthly basis it fell by 56 percent, year-by 66 per cent, which led to the destruction of the oil market in the country.
The majority (75 percent) of deliveries were intended for China and for Cuba, Malaysia and Spain. The drop in exports, according to experts, was triggered by the failure of Mexican companies from Venezuelan oil. At the beginning of June in the country there was only one working rig.
The President of Mexico, Andres Manuel Lopez Obrador said on June 15 that he is ready to sell gasoline to Venezuela as a humanitarian gesture, despite US sanctions. South American country has faced fuel shortages after years of poor management of production and processing infrastructure.
In late may, the Venezuela started selling its oil through a mysterious Mexican company Libre Abordo, which market players have not heard anything. The firm has become one of the largest buyers of Venezuelan oil contracts for 32 million barrels.