Venezuela: Venezuelan oil prices fall in August
September 14, 2015
In August, the average price of Venezuela’s mix of crude oil declined 18.6% over the previous month, falling from USD 49.4 per barrel in July to USD 40.2 per barrel. The result marked a steeper fall than July’s 12.4% decline.
According to the latest report from the Organization of Petroleum Exporting Countries (OPEC), Venezuelan oil production totaled 2.36 million barrels per day (mbpd) in August, which was slightly below June’s 2.37 million barrels per day.
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 battered 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.