Girish Gupta

HOME

PHOTOS

ONLINE

Twitter
Instagram
IFTTT
Facebook
LinkedIn
Keybase
GitHub

BY COUNTRY

Brazil
Colombia
Cuba
Ecuador
Egypt
Guyana
Iraq
Jordan
Lebanon
Mexico
United Kingdom
Venezuela

BY MEDIUM

Text
Photo
Radio
TV/Video

BY PUBLISHER

Al Jazeera
BBC
BuzzFeed
CBC
Christian Science Monitor
CNN
Daily Mail
Datum
Ecologist
Economist Intelligence Unit
Emerging Markets
Financial Times
Foreign Policy
France 24
Fusion
GlobalPost
Guardian
Independent
La Prensa (Panama)
LatinFinance
Mancunion
Monocle
National (Abu Dhabi)
New Internationalist
New Statesman
New York Times
New Yorker
NPR
PBS
PRI
Radio France Internationale
Reuters
RTE
Sky News
Sun
Sunday Times
Telegraph
TIME
Times of London
USA Today
Vice
WLRN

ABOUT

About
CV
Contact (PGP Key)
Maduro seeks help from OPEC members as oil price slides
Jan. 13, 2015 — Caracas, Venezuela

Published by Economist Intelligence Unit

Event

The president, Nicolás Maduro, is on a tour of OPEC nations, hoping to persuade members to cut production as Venezuela suffers further from low oil prices.

Analysis

Mr Maduro has visited Iran, Saudi Arabia, Qatar and Algeria on this tour, after the former oil minister, Rafael Ramírez, failed to convince oil producers to cut production at an OPEC meeting in Vienna last November. Iran is in a similar position to Venezuela, suffering from low prices, and has said that it would collaborate with Venezuela's attempts to force a price rise. However, the other nations have been more lukewarm, talking with Mr Maduro but not promising action.

The Venezuelan oil barrel, which sells for slightly less than international prices, as it is composed of heavier crude, last week averaged just US$42.44. This is almost US$20 below the amount budgeted by Venezuelan authorities, and perhaps three times less than the country requires to support its bloated spending. Mr Maduro said last year that he could guarantee "food, education and life" to Venezuelans even if the barrel went down to US$40. This is not realistic, particularly as 96% of the country's foreign income comes from oil.

Low oil prices will continue to be a major economic challenge for Venezuela and a major political problem for Mr Maduro. In the final days of 2014 the government confirmed that the country's economy had been in recession for the first three quarters of the year, and annual consumer price inflation in November was at 63.6%, the highest rate in the hemisphere. Mr Maduro vowed that 2015 would be a year of "great economic transformation" and hinted at policy changes, including an overhaul of existing exchange controls. However, there is little likelihood that this will happen, given his lack of political capital. Mr Maduro's approval ratings are in the low twenties and falling.

In Caracas, the capital, supermarket lines and shortages are at their worst in years. Many people, some former government supporters, are losing patience. Queues of thousands of people outside supermarkets have long been a regular occurrence in the interior of the country, especially at its borders with Brazil and Colombia. However, until now, these have been rare in Caracas.

Impact on the forecast

We do not foresee a major change in OPEC policy as a result of Venezuela's lobbying efforts. Therefore, we have made no adjustments to our forecasts at this time.

Filed from
Caracas, Venezuela






More...

BBC World Service - Protests
Apr. 20, 2017


Journalist charged in Venezuela after anti-Maduro protest
Sept. 5, 2016


Maduro seeks help from OPEC members as oil price slides
Jan. 13, 2015


Pictures from Praça do Diário, Recife
Nov. 1, 2013


Gay rights march in Suriname protests homophobia
Oct. 12, 2011


Campaign of terror in El Prado
May. 19, 2011


At the gates of Glencore’s La Jagua mine
May. 19, 2011


El Día del Trabajador, 2011
May. 2, 2011


Jon Slattery: BBC interviews Gupta on work experience at Indy
Feb. 3, 2011


Harlan Ellison - Pay the Writer
Jan. 18, 2011


Private Eye: Internshits
Dec. 10, 2010


Jon Slattery: More on the workie who challenged the Independent: Is he a Clark Kent or David Brent?
Nov. 25, 2010


Malcolm Coles: Invoicing Independent intern interviewed over internet. Interesting insights.
Nov. 25, 2010


Jon Slattery: What happened when a workie sent the Indy a bill
Nov. 25, 2010


Jay Kay's KO for Lady GaGa
Nov. 4, 2010








© Girish Gupta