The socialist country Venezuela is collapsing yet again thanks to their endless stream of mismanagement and corruption thanks to their dictator and now are begging the U.S. to send them more crude oil to help their failing country, reports Hot Air.
Venezuela is sitting on top of one of the richest crude oil deposits on the planet and yet they cannot keep their infrastructure running properly long enough to supply their citizens with enough oil. It’s a sad country when they can’t even do that.
“‘Struggling Venezuelan state oil company PDVSA has launched tenders to purchase a total 4.2 million barrels of U.S. and Russian crude oil, which includes up to 3 million barrels of U.S. light sweet and 1.2 million barrels of Russian Urals, Reuters reports citing tender documents.
One tender is for five cargoes, 600,000 barrels each, of WTI or DSW crude blends. According to the documents, the company would also consider taking it in alternate increments of two 1-million-barrel cargoes of U.S. crude, plus another 600,000-barrel shipment.
The other tender is for two cargoes of 600,000 barrels of Urals crude each, both for January delivery. The crude will be processed at Venezuela’s Isla refinery, which has a capacity of 335,000 bpd, but Isla has been working at reduced utilization rates because of a shortage of light crude,’ reports Oil Price.”
Hot Air says that Russia will likely make a delivery assuming they can spare some. Maduro has no assurance that he’ll get the oil from the U.S. for a couple of reasons.
One is that the U.S. sanctions against him are still in place with more being considered. The second is the fact that someone will have to be willing to take the chance to extend credit to Venezuela, a country that’s current economy is in tatters.
Oil Price reports that oil tankers are causing jams in the ports of Venezuela because they are waiting until they receive enough oil to transport.
At the other end of the supply chain, ten tankers full of crude are sitting offshore awaiting orders to unload which have not come because the sellers are not being paid. The system is nearly shut down.
The current crude oil output from Venezuela is at historic lows and they’re sitting at 13% capacity utilization in their refineries.
This all is the result of what happens when a country tries to make socialism work. The New York Times has even reported that the people of Venezuela are starving in the streets and are protesting in the streets. The country is falling apart thanks to its disgusting dictator and his socialist reign.