October 15, 2014

NOW HIKE GAS TAXES AND SHOVE THE DAGGER HOME:

Ouch: Plummeting Oil Prices Sting Russia, 'Petro States' (Alan Neuhauser, Oct. 15, 2014, US News)


Bummer, Vlad:  the lowest crude oil prices in four years are hammering petro-states from Putin's Russia to Venezuela, starving them of their largest source of cash. [...]

 "It takes revenue out of their pockets," says Julie Carey, energy economist at Navigant, an industry consulting firm.

Last week, Venezuela, which heavily relies on oil exports, began seeking a rare emergency meeting of OPEC, the cartel of 12 oil-producing states in Latin American, Africa and the Mideast.

"Venezuela is panicking," Carey says.

And with good reason. Short of cash, Venezuelan bonds have fallen to a three-year low, Bloomberg reported Wednesday, and a pair of Harvard economists have predicted that the country will default on its foreign debt.

Posted by at October 15, 2014 4:07 PM
  

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