Slumping crude prices have investors and analysts warning of a potential messy default in Venezuela, with state-owned oil company PDVSA owing some US$10 billion in external debt payments due this year. With crude hovering around US$28 per barrel, Venezuela could have trouble satisfying its obligations.
If the newly elected Venezuelan National Assembly votes to cancel that country's program of subsidized oil sales to Caribbean and Central American nations, the United States will not be able to substitute U.S. oil for Venezuelan oil, a senior U.S. official warned this week.
Venezuelan President Nicolas Maduro has pledged to build a comprehensive plan for PetroCaribe, in the next ten years, spanning 2015-2025.
Analysts agree that the Venezuelan president will need to put aside some of his anti-imperialist jargon and socialist practices to stay in play.
The International Monetary Fund (IMF) says it is monitoring the potential impact any changes to PetroCaribe, Venezuela’s oil alliance with several Caribbean islands will have on regional economies.
Uruguay's president Jose Mujica will be attending the next Mercosur presidential summit scheduled for Tuesday, 29 July in Caracas, when the creation of an economic forum Mercosur/ALBA/PetroCaribe will for consideration as part of the agenda.
Venezuela said the current political unrest in the country poses no danger to the future of the Bolivarian Alliance for the Peoples of the Americas(ALBA) and the oil initiative PetroCaribe.
Venezuelan President Nicolas Maduro ended a one-day visit to Guyana on Saturday in a move that strengthens the relationship between the two countries that have had a long standing border dispute. The two countries have agreed to ask the Jamaica-born academic, Professor Norman Girvan to continue as the United Nations (UN) Good Officer as they seek to settle their border dispute.
In the eve of the Managua summit which will focus on creating a new Economic Zone, Petrocaribe, the late Venezuelan president Hugo Chavez’s oil treaty, continues to play a vital role in the economic development of its 18 member states from the Central America and Caribbean region. But given the current political and economic climate in Venezuela, the question remains if Petrocaribe’s cheap oil is sustainable?
Presidents, Foreign ministers and representatives from 22 Latinamerican and Caribbean countries stamped their signatures to a declaration stating their commitment in support of Venezuela and its institutions in the international stage.