Venezuela Down to Two Oil Rigs Amid Crippling Washington Sanctions

The deadly coronavirus pandemic has lead to the crippled many economies around the world, especially those that are reliant on the oil industry as a source of revenue. When global demand plummeted and caused oil prices to fall to record lows, the oil-rich countries found themselves at a disadvantage. Venezuela however, has an even more unique struggle.

Besides oil prices already having a toll on the Venezuelan economy, the addition of America’s crippling sanctions have been the final nail in the coffin. According to data from Baker Hughes, Venezuela, which has some of the largest oil reserves in the world, is down to only two rigs as of May, compared to 25 rigs in March, and only producing approximately 645,700 barrels per day.

Even prior to the collapse of world oil prices, Venezuela was facing a significant economic crisis due to Washington’s notorious sanctions which have been starving Venezuelan citizens. Given that the country’s large oil reserves are essentially the government’s only source of revenue, it is ironic that the country is now suffering from a domestic fuel shortage. Recently, Iran defied Washington’s sanctions, and delivered much needed refining components as well we gasoline to Venezuela, so people can ration some gasoline for their cars.

Information for this briefing was found via Oilprice and Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.