Experts predict the situation in
Venezuela will worsen as early as the first half of 2015. "It will be a
year of extreme scarcity," Venezuelan economist Angel Garcia Banchs said.
"What's coming to Venezuela is chaos that will probably lead to barbarity
and people looting. " The state of the Venezuelan economy is the result of
years of economic mismanagement that the government, for years, was able to
cover up by pumping oil revenues to support its populist policies. But this was
when oil was at more than $100 per barrel, and despite declining oil production
in Venezuela, revenues were enough to keep people happy. But since this summer,
Brent fell from above $115 per barrel to $70, thanks in part to North America's
shale boom, and oil analysts predict oil prices will keep declining below $70
for Brent and even more for crude.
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