Related Articles
Report
Forward article link
Share PDF with colleagues

How much worse can it get for Venezuela?

The country's oil industry would suffer badly in a default scenario

THIS oil downturn has inflicted damage far and wide. But nowhere has it hit harder than in Venezuela, which is careering towards a possible default at the sovereign level or at its state oil company PdV. It scarcely matters which: either would inflict a heavy toll on the country’s oil industry. The descent into economic chaos has been relentless. Venezuela’s oil-dependent economy was already in perilous shape with close to $100-a-barrel oil thanks to years of wasteful mismanagement of tens of billions of petrodollars. With oil at $40/b, the country’s finances are melting down. The IMF expects the economy to shrink by 8% this year after a 5.7% decline last year. If the IMF’s 2017 GDP forecas

Also in this section
Venezuelan crunch time
17 November 2017
Venezuela faces steep bond payments before the end of the year. It is looking to Russia to help keep it from default
Taking a chance in Kurdish Iraq
16 November 2017
The KRG referendum result and subsequent Iraqi army offensive against the Kurds underline how risky it is for companies involved in the export and sale of Kurdish crude
Iraq—the end of the beginning
16 November 2017
Iraq's army has retaken Kurdish-controlled areas around Kirkuk in the north, while neighbouring states are considering their long-term response to the independence referendum