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| Caribbean-Latin America |
| Venezuelan oil falls to lowest price in 22 months |
| 2008-11-22 |
| Prices for Venezuelan oil reached their lowest level in 22 months Friday as fears of a global recession stalled demand, slashing the main source of cash for President Hugo Chavez's hefty state spending. Venezuelan heavy crude dropped to an average $40.68 for the week ending Friday, less than a third of its $129.54 July peak. Venezuelan oil requires extensive refining, and so is significantly cheaper than the light, sweet crude commonly used as a benchmark for oil. Prices for that oil dropped to $48.25 a barrel Friday, their lowest level since May 2005. Oil makes up 94 percent of Venezuelan exports and funds half the government's budget. The legislature last month backed a $77.8 billion budget for 2009 that assumes average oil prices of $60 per barrel. But Finance Minister Ali Rodriguez in September said that $60-a-barrel oil could force the government to tighten spending. 2M BBL/day @ $40/BBL is $29B. You're a little short Hugo, but enough about your stature. Chavez has insisted his government is prepared for a price slide, saying Venezuela could tap $39 billion in foreign currency reserves or more than $30 billion in slush funds to withstand the downturn. Except Hugo and his cronies have stolen most of it or given it away to other Socialist paradises. |
| Posted by:ed |
| #7 Oil makes up 94 percent of Venezuelan exports and funds half the government's budget. Which begs the question - what makes up the other half? So Hugo will have to raise taxes as the entire world enters an economic downturn - that'll be interesting to see. |
| Posted by: Jeremiah Thaise1218 2008-11-22 23:27 |
| #6 We'll see. Cross you're fingers, the elections of the 23rd will pretty much determine the fate of the 21st Century Socialist Supermo. |
| Posted by: .5MT 2008-11-22 15:54 |
| #5 Nah. He'll suicide by shooting himself 27 times with an AK-47 (pausing only once to reload....) |
| Posted by: Pappy 2008-11-22 14:39 |
| #4 and he's promised off a good share of the exports to his socialist comrades at below market (near free) rates to buy prestige and perceived power. Nice job, dickhead. I see a crackdown and a backlash coup in two years. Hope he tastes the tank treads |
| Posted by: Frank G 2008-11-22 13:59 |
| #3 Tha farther oil slides, the less Ugo shoots his fat mouth off. Faster, please. |
| Posted by: Mike N. 2008-11-22 13:18 |
| #2 |
| Posted by: DMFD 2008-11-22 13:09 |
| #1 Well if that $69 Billion is in any kind of investment vehicle, it's prolly worth about $40 Billion now. It would be sweet to see him blow away his entire reserves on one year. He's screwed unless something big happens to the oil market, and I don't see that in the short bet. |
| Posted by: bigjim-ky 2008-11-22 11:53 |