Maduro "Wake Up" Call For OPEC As Venezuela Crude Crashes To 13 Year Lows

Tyler Durden's picture

Venezuela's crude oil basket price collapsed to as low as $20.20 yesterday, according to the socialist utopia's President Maduro. Having already "passed the point of no return," Maduro rages that OPEC producers appear to be "finally waking up" to what they have unleashed noting that, according to him, Russia's Putin has agreed to "work on oil price issues."

More jawboning and hope...

  • *VENEZUELA'S MADURO SAYS HE SPOKE W/RUSSIA'S PUTIN ON OIL
  • *RUSSIA'S PUTIN AGREED TO WORK ON OIL PRICE ISSUES: MADURO
  • *SOME OPEC PRODUCERS 'WAKING UP' TO OIL SITUATION: MADURO
  • *VENEZUELA OIL PRICE REACHED $20.20/BBL YESTERDAY, MADURO SAYS
  • *VENEZUELA SHOULD REPLACE OIL AS MAIN FX INCOME SOURCE: MADURO
  • *VENEZUELA'S MADURO SAYS HE HOPES OIL MARKET RECOVERS

“Some OPEC countries that flooded the oil market are now waking up,” President Nicolas Maduro said on state television.

Flooding oil market was “suicidal policy” by some oil producers: Maduro

Maduro said he spoke with Russia President Vladimir Putin on oil prices - “We agreed to continue working on a common vision, a common plan”

Hope is not a strategy...

 

As we concluded previously, what all this translates to is simple: first default, then revolution.

Which is good news for those who buy CDS. Our only hope for those who have held so far is that the counterparty you will have to novate with will still be around once the sparks fly, because once this first OPEC member goes bankrupt, things will start moving very fast.

Finally, for all those who are praying for an oil bounce, your day may be near, because nothing will send the price of crude soaring quite as fast as one entire OPEC nation suddenly entering a death spiral of chaos.

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Bill of Rights's picture
GAO: 70% of Firearms Seized in Mexico Came From USA

http://www.gao.gov/products/GAO-16-223

Arrest Holder and Impeach the man child!

Money Counterfeiter's picture
Money Counterfeiter (not verified) Bill of Rights Jan 22, 2016 1:23 PM

I guess the bus driver never got the memo Russia/Iran/Saudi are involved in an oil death match war.

orez65's picture

"VENEZUELA SHOULD REPLACE OIL AS MAIN FX INCOME SOURCE: MADURO"

Ok, with what? bananas, mango juice, socialism text books ...?

"If you are under 30 years old and are not a socialist, you have no heart. If you are over 30 years old and you are a socialist you have no brain" Winston Churchill

KesselRunin12Parsecs's picture
KesselRunin12Parsecs (not verified) Jan 22, 2016 1:17 PM

At least they have toilet paper... Oh Wait!

Money Counterfeiter's picture
Money Counterfeiter (not verified) KesselRunin12Parsecs Jan 22, 2016 1:24 PM

Even when they do have tp they tell you to not flush it down the toilet.  

Atomizer's picture

Waiting for Wallstreet Urinal to compare the US gallon of milk vs the cost of Venezuela toilet to a gallon of gas. That will fuck up IMF SDR projections. 

Truth Eater's picture

Desperation breeds desperation.  Venezuela is a desperate place these days.

 

Saudi Arabia & Iran are pumping out oil nonstop because they will take every nickel they can get in the building of their war machines.  They will soon be at war and they know the only time to get the goods is now.

 

It will be wars that slow the flow of oil on the seas.  And it will be wars that cause the increased demand for oil.  Wars will come.

Soul Glow's picture
  • *VENEZUELA'S MADURO SAYS HE IS REALLY PISSED OFF SOCIALISM DOESN'T WORK, BLAMES BUSH
Money Counterfeiter's picture
Money Counterfeiter (not verified) Soul Glow Jan 22, 2016 1:27 PM

Banker mafia cleaned then out and they cannot seem to figure out how.  Not yet anyway.

Atomizer's picture

Obama denies that he's a Indonesian Muslim. Yet they spend taxpayers money like water. Take at a look on the staff we pay as civil servants. 1billion + on vacations. Mrs. Obama has 27 negro slaves. 

Still Report #541 - Mrs Obama's Swollen Staff

Kprime's picture

Mrs Obama has to buy a swollen staff cuz Mr Obama only shares his swollen staff with other male monkeys.

Salsipuedes's picture

Maduro got the wake up call when they O.D.d Chavez. Nobody is more conscious of the clock ticking and the need to stay awake.

Dre4dwolf's picture

Cheap oil/energy should drive a robust economy, if it doesn't the debt burden on consumers is too high for a recovery to take place.

The only way an economy that cant grow with cheap abundant energy can grow is if debt is relieved.

 

Debt can be wiped away with debt jubilee or with massive inflation, or massive refinancing programs to stretch the term of the loans out longer and reduce interest rates to something reasonable.... or to convert loans to simple interest.

Its not a secret that the global economy has been and is in decline, the only effective tool The Central Banks have is to pseudo bailout the public via a massive refinancing undertaking (just have the central bank buy all the debt at par value on the notes) and refinance all the notes by decree.

Cap the consumer interest rate at 2%.

The economy has a huge debt anker on it, more wind wont get the ship moving , the only way to get the ship moving is to make the anker lighter/cut it loose.

With cheap energy like this the economy under normal circumstances should be roaring.

besnook's picture

interesting. one of the reasons iran was/is part of the axis of evil was they were going to establish a producer sponsored trading bourse that priced according to real delivery and not speculative security instruments by people who had no skin in the actual product. putin has now talked about the same sort of arrangemnt.

Vergeltung's picture

sweet, sweet schadenfruede re this socialist's pain.

Dr. Engali's picture

Just pass out moar free teevees to all the peasants again. That should fix everything.  

Emergency Ward's picture

I heard they were selling those Samsungs at below cost but when I got to the store they were all gone.

g'kar's picture

maduro has the right idea, venezuelan currency on a roll...write in your own denomination

MoonSun's picture

So Maduro wants to fix prices with OPEC and live like a good old capitalist rentier...

Niall Of The Nine Hostages's picture

The days when Moscow propped up communist states in Latin America are long past, as Maduro could have verified from anyone in Havana. I'd be very surprised to learn that Putin returned Maduro's calls.

My alcoholic mother used to make up conversations she'd had with people that her children knew very well had never taken place, in which said people supposedly told my mother what she needed to hear to get her through the night. If Maduro hasn't the balls to blow his brains out and has decided to drink himself to death instead, he's clearly making good progress.

He's clearly past caring about his dignity though---or his country's.

Kprime's picture

Venezuela should have purchase some bombers for the kindly USA and bombed some neighbors.  That's how all the other oil producing nations are getting rich.

am87's picture

Brazil is in the same shape.

NOZZLE's picture

Pepe Manuro, too bad you socialist piece of crap I hope they akin you alive.

tarabel's picture

 

 

First off, Venezuela still needs a credible national soccer team so we don't have to look at pictures of this Bozo any more.

Second, WTF does Ralph Kramden think can replace oil as a premier Venezuelan export item?

Blow? Soylent Brown? Craft items made out of empty toilet paper rolls? What?

Third, when do the Tongs come to collect their overdue loans and what are they going to accept in payment? See list item # 2 above.

El Presidente keeps ratchet-jawing about evil old Uncle Sam coming to take him away, ha-ha, but I suspect that his problem is actually coming from his nephew Bang Ding Ow.

rudyspeaks's picture

Sooo... when do articles about the world's richest nation, with 1 in 5 children in poverty, 1% of the citizenry homeless on any given night, the highest health costs and shittiest health stsats, start with the phrase"In the capitalist paradise of America..."?

tarabel's picture

 

 

Well, time is short this afternoon but permit me to observe that most reasonably "middle class" citizens of the Third World would vastly prefer the enhanced quality of life that comes from enduring a life of grinding poverty in America.

SmittyinLA's picture

Last time Venezuela had a cash crunch they hit up Heidi Cruz at Goldman Sachs, she helped get the Dominican socialist thieves 2.5 B cash unsecured loans to pay off their accumulated 4.xB ZIRP loans to Hugo.

Made a cool 700 million dollar profit.

(Ted asks no questions about her work)

goldenbuddha454's picture

very hard to refine that mud