In addition to the coronavirus pandemic and the drop in oil production, Venezuela is experiencing a major financial crisis that has been exacerbated further by the price war between the world’s producers of the commodity. The dispute reduced the country’s revenue even further. Remembering that more than 90% of Venezuela’s export revenue comes from oil.
According to economic consultancy Ecoanalitica, the country is in danger of generating less than $8 billion this year, a third of the $25 billion in 2019. Last week, Venezuela’s production fell below 700,000 barrels per day.
Three weeks ago, Venezuelan President Nicolás Maduro called the oil market disruption a “brutal blow” that reduced the price below the cost of production.