Falling Oil Prices Turn Up The Heat On Venezuela’s Maduro

Although he tried to put a brave face on the OPEC decision—in a nationally televised address the same day, Maduro claimed there was nothing for Venezuelans to worry about—the fact is that the Venezuelan economy is in free-fall. Figures released by the government in September showed annual inflation running at over 60%, while foreign currency reserves have plummeted nearly 30% in the last two years despite being propped up last week by a Chinese loan. Venezuela boasts the world’s largest oil reserves—but years of mismanagement and a lack of investment have the left the country in a fiscally tight spot, without the resources to withstand a prolonged drop in the oil price. And although it is a member of the OPEC cartel, the grouping is dominated by Saudi Arabia, one of the world’s largest oil producers, which was reported to be the prime mover behind the Nov. 27 decision in a bid to undermine shale oil production in north America. More…