The political crisis in Venezuela is impacting on oil prices as Brent crude rose to $64 a barrel on Monday.
Bad for Venezuela, but it is good news on a fellow mono-economy country like Nigeria whose budget was already more or less floating in the wind.
‘The Nation’ reports that the Organisation of Petroleum Exporting Countries-led supply cuts and sanctions from the US against the country’s petroleum industry offset forecasts of weaker demand and an economic slowdown.
It adds, “The sanctions came into force yesterday and ban US companies from exporting goods or services to the country’s state-run oil company, Petroleum of Venezuela (PDVSA). Spot gold also fell slightly by 0.5 per cent to $1,310.76 per ounce – its lowest level in nearly a week.
“Yesterday, 10 European countries joined the US in recognising opposition leader Juan Guaido as Venezuela’s interim president, heightening a global showdown over Nicolas Maduro’s socialist rule.
“The coordinated move from Britain, France, Spain, Germany, Portugal, Sweden, Denmark, Austria, the Czech Republic and the Netherlands came after the expiry of an eight-day ultimatum for Mr Maduro to call a new election.”
