Venezuela depends on oil sales for over 95% of its export earnings, with the hard currency being used to pay for imports, social programs, external debt and arbitration settlements. As a result the decrease in the price of oil this year has been viewed with concern. Brent crude has fallen from a previously stable US $105 in July down to $78 currently.
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| Brent Crude Oil Price in USD/barrel from Nov 2013 - Nov 2014 |
Lower oil prices are an additional strain on Venezuela’s ailing economy. But $75-80 oil won’t send the country into default...yet, but the D-word is being whispered by some analysts.
