Oil Production Slump Adds To Inflation of Venezuela

Venezuela's oil production has severely dropped. In June it has barely produced 2.15 million barrels of crude oil per day which is recognized as the weakest since 2003. This crisis indicates that the nation is dealing with a financial situation since Venezuela's economy is dependent on oil as it accounts for 96% of exports. It is the only country aside from Iraq that has reduced production for the previous month. As reported by the International Energy Agency, Venezuela has managed to produce 2.4 million barrels per day last year. Analysts affirmed that the failure of Venezuela lies in the fact that they haven't invested enough money to the oil industry. The fact that the country is facing enormous inflation is a result of the country's currency decline. Companies have found it difficult to adjust with the higher costs. Even though prices have increased, the continuous decline of production will result in oil revenue dropping further than expected

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