February 27, 2021

Venezuelan oil falls at 1998 prices: $ 9.98 per barrel



The price of Venezuelan oil closed this week at 70.62 yuan ($ 9.98), which is the lowest rate registered so far in the 21st century and the price returns to averages similar to those of 1998, they reported this Friday. official sources.

The report was released by the Oil Ministry, which reports prices every Friday in the Chinese currency and not in dollars due to the sanctions imposed by the United States Government on the Executive of Nicolás Maduro.

The convertibility rate used this week was 7.07 yuan for every US dollar.

Venezuela has spent more than two months with a sustained drop in the price of its oil, which was traded for several years above $ 100 and this year has been dragged down by the drop in world crude oil prices amid the pandemic due to COVID-19.

The estimated cost of production for each barrel of Venezuelan oil is around 19 dollars.

The current price is the lowest since 1998, when a severe global economic crisis drastically reduced the value of oil. This subsequently rose thanks to an agreement by the oil countries to lower the production of barrels.

In 1999 Hugo Chávez began his first presidential term in Venezuela, just as oil prices began to recover.

The Venezuelan Oil Ministry also reported other reference baskets such as that of the Organization of Petroleum Exporting Countries (OPEC), of which Venezuela is a founding member, and closed this week to the downside, going from 19.03 to 14, 89.

Brent lost almost $ 7 closing at $ 22.94 while WTI, which fell into negative territory earlier in the week, managed to trade this Friday at $ 4.19 per barrel, representing a loss of 16, 38 dollars with respect to the previous period.

Venezuelan President Nicolás Maduro said this week that his country is prepared to face below-zero prices, not to mention the coordination it maintains with OPEC and with countries like Russia to get these tariffs off the ground.

OPEC and another large group of producing nations will launch a global cut in the oil supply on May 1, with which they hope to encourage prices.

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