The situation in Venezuela has become so bad that even soldiers are struggling to support themselves. Over the weekend, six members of the Venezuelan military were detained by local authorities for stealing goats, the Venezuelan newspaper El Nacional reported on Sunday. It said the soldiers confessed to stealing the goats and said they did it to feed themselves, since they had no food left in their barracks.
Venezuela has been hard hit by food shortages, a dizzying inflation rate of about 181% and a collapse in the price of oil — its most critical export.
Crude prices are down more than 25% in the past 12 months, despite a sharp bounce from their February lows, and the pain is expected to continue in Venezuela. IPD Latin America, a U.S.-based energy consulting firm, gave a pessimistic scenario for Venezuela's oil output to decrease to an average of 2.35 million barrels per day this year. The firm's previous estimate was 2.62 million barrels.
Our original forecast for 2016 annual production of 2.62 mmb/d could still be achieved with an oil price hike in the 70-80 US$/bbl range during the second half of the year,the firm said in a release. US crude traded near US$44 a barrel and some markets watchers see it near a peak.