With OPEC slashing demand expectations to 12 year lows, oil prices have re-cratered today putting further pressure on socialist-utopia Venezuala which needs $121/bbl to break-even. Credit risk for the South American nation has exploded today to record highs - implying a 93% probability of default and President Maduro has taken to the airwaves to calm a benefit-needy nation... tensions are mounting...
Default risk has gone vertical...
As bond prices and black market FX crash further.
President Maduro explains:
- *MADURO SAYS VENEZUELA WORKING TO SOLVE `ECONOMIC CRISIS'
- *VENEZUELA WORKING TO RAISE OIL PRICES: MADURO
- *VENEZUELA OIL COSTS ABOUT $12/BARREL TO PRODUCE: MADURO
- *U.S. HYDRAULIC FRACTURING NEEDS $60/BBL OIL: MADURO
- *VENEZUELA'S 2015 BUDGET BASED ON $60/BBL OIL: MADURO
- *MADURO SAYS GUARANTEES NEEDED RESOURCES FOR ECONOMY IN '15
- *MADURO SAYS THERE WILL BE `PROBLEMS' WITH DOLLAR INCOME
- *VENEZUELA MUST `OPTIMIZE' USE OF EACH DOLLAR: MADURO
* * *
We would do well to remember what happened earlier in the year as deadly protests were only calmed down by promises of generous redistibution of wealth from government coffers... that promised cash is not there any more...