Wednesday, February 17, 2016

Is Venezuela a Trustworthy OPEC Partner?

OPEC announced a freeze in oil production to get prices back up. A Bloomberg reporter asks about the trust problem. More specifically for this blog, Venezuela is the worst off as a result of dropping oil prices and needs revenue badly.

So until OPEC members are all on an equal economic footing, don't expect "trust" to be a word that has much meaning when new production agreements are unveiled.

There is a strong incentive for PDVSA not to freeze production and instead to reap the benefits of higher prices. Someone more knowledgeable than me would need to explain how production is overseen.


  © Blogger templates The Professional Template by 2008

Back to TOP