Venezuela: Venezuelan oil prices drop again in October
November 12, 2015
In October, the average price of Venezuela’s mix of crude oil dropped 1.7% over the previous month, falling from USD 41.1 per barrel in September to USD 40.4 per barrel.
According to the latest report from the Organization of Petroleum Exporting Countries (OPEC), Venezuelan oil production totaled 2.358 million barrels per day (mbpd) in October, which represents a drop from September’s production of 2.365 mbpd.
The Venezuelan government relies heavily on oil revenues to balance its budget and to comply with its international obligations. Oil accounts for about 95% of Venezuela’s exports and for more than half of public sector revenues. The recent plunge in oil prices is expected to put additional pressure on the country’s finances. While the 2015 budget assumes an oil price of USD 60 per barrel, analysts point out that the government needs a breakeven oil price that is well above USD 100 per barrel and that the country loses USD 700 million a year for every USD 1 decline in oil prices.