Venezuela Could Be in Political Trouble due to Drop in Oil Prices
By: Lance Winslow
With the Global Oil Crude prices dropping Venezuela could be in super big economic trouble. Venezuela’s crude oil is somewhat thicker than most crude and it takes a little more to refine and get out of the ground. Hugo Chavez should be worried about his power base and political future as he has promised so much to the people and now there will be no way to pay for it all.
Hugo Chavez is busy attempting to organize other nations to rally against the United States and it will be interesting if he becomes a non-important person in his own country soon enough. Unfortunately for Hugo Chavez and Venezuela the communist trend there is indeed causing huge productivity issues there with the oil business. Production is down and now oil crude prices are dropping world-wide and this trend is expected to continue fall below $50.00 per barrel before December 2006.
Venezuela could be in Political trouble due to the huge recent drop in Oil Prices. Venezuela relies on oil exports and without this vital income and inflows Venezuela will most likely renege on its promises to sell oil cheap to poorer nations in trade for their political block support.
Meanwhile without giving all that has been promised to the people Venezuela is in serious straights and it may all fall down like a ton of bricks in a crumpling landslide faster than Hugo Chavez can rectify the problem or find a solution? Consider all this in 2006.
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