US Sanctions May Play into China’s and Russia’s Hands

Venezuela is going to have one heck of an ‘Oil Fire Sale’
Venezuela is now on the brink of total collapse. As you’ve seen before here in Oil & Energy Investor, most recently only last weekend, national oil company PDVSA looms large in this unfolding crisis. The focus is the company’s ability to pay bond interest due in two months. Doing so is crucial. But as of this morning, that prospect is dwindling.
Along with it goes the ability of the central government to administer an entire population and avoid the country descending into outright civil war. And PDVSA is at the center of it all. Now, there’s talk of U. S. sanctions on PDVSA in particular. Here’s how that may play right into Russia’s and China’s hands…
This is Venezuela’s Oil Supermarket
PDVSA is the vehicle for about 90% of Venezuela’s trade revenue and has served as a primary outside purchaser of all manner of staple commodities essential for the literal survival of a domestic economy rapidly sliding into oblivion.

This post was published at Wolf Street by Kent Moors ‘ Aug 24, 2017.