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.