Magis Global –


March 14, 2014

Venezuela

Category: General – Tags: – admin – 9:56 am

We spoke yesterday of the difficult situation by which it crosses the Venezuelan economy in the dollar is the main threat for Chvez, an economy that by serious errors of economic policy of its government, was highly made employee of its petroleum exports, while it undergoes the effects on his productive system of the distortion produced in his relative prices (internal and in the type of change). Today it will be the turn of Ecuador, a country friend of Venezuela and that is not either passing it of the best way, given its high dependency of the petroleum exports. For Ecuador, the petroleum exports represent 40% of the total of the same. The collapse of the price of petroleum has taken great preoccupation not only to the Ecuadorian government but also to the investors who have increased the perception of vulnerability of the Ecuadorian economy. It is that the strong fall in the quote of the crude one has aggravated the Ecuadorian fiscal accounts significantly. Ecuador, receives at the moment less than US$ 50 by its crude one, whereas its budget is structured around a price of the barrel of US$ 80 dollars, in agreement with the analysis realised by the IdeGlobal consultant. To make matters worse for Ecuador, the country decided to rejoin to OPEC in the month of October of the year last after 15 years of an almost unnoticed participation, forces which it to accept the reduction in its production so what was decided in the last meeting of the organization. According to site the Commerce the oil consultant Hctor Peace and I mine said on the reduction of the petroleum production ready by OPEC: Estar subject to the quotas of OPEC does not benefit to us because the country has two problems: low prices and one lower production. In that scene it worries that we must lower still more production.

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