• 4 minute Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 8 minutes Could oil demand collapse rapidly? Yup, sure could.
  • 15 minutes Oil and Trade War
  • 29 mins Could oil demand collapse rapidly? Yup, sure could.
  • 3 hours Oil prices going down
  • 3 hours Migrants: Italy Wants EU Border Agency In Africa, Not At Sea
  • 7 hours Sabotage at Tesla
  • 27 mins What If Canada Had Wind and Not Oilsands?
  • 11 hours The Wonderful U.S. Oil Trade Deficit with Canada
  • 3 hours The Irrelevance Of BTU Rating - Big Oil's Gimmick To Hoodwink The Public
  • 2 hours Trump Hits China With Tariffs On $50 Billion Of Goods
  • 1 hour Nopec Sherman act legislation
  • 3 hours After Three Decade Macedonia End Dispute With Greece, new name: the Republic of Northern Macedonia
  • 15 hours venezuala oil crisis
  • 15 hours Oil and Trade War
  • 14 hours When will oil demand start declining due to EVs?
  • 14 hours Germany Orders Daimler to Recall 774,000 Diesel Cars in Europe
  • 1 min Sell out now or hold on?
  • 5 hours China & India in talks to form anti-OPEC
3 Possible Outcomes From The OPEC Meeting

3 Possible Outcomes From The OPEC Meeting

With the OPEC meeting nearing,…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

Investors Have Yet To Receive PDVSA’s $842M Bond Payment

PDVSA

PDVSA’s Friday payment of $842 million on 2020 bond payments has yet to reach investors, according to a new report by Reuters—a fact that does not bode well for cash-strapped Venezuela.

Six market sources told Reuters on Monday that despite the state-run oil company’s claim that the payment went through, bond investors had not yet received their due.

Last Friday, Ray Zucaro, the chief investment officer at Miami-based RVX Asset Management, said: “Given logistics and steps needed to get payment to bondholders, I doubt that the money will arrive by the end of today, Monday is more realistic, and then we will hear a big sigh of relief.”

Caracas owes another big bond payment, which is due November 2nd. So far, it seems the country intends on meeting the no-grace period debt obligation as well.  

“I don’t think we’ll sweat as much going into November 2, given the fact that they’ve made this amortization payment,” Siobhan Morden, of Nomura Securities, told Bloomberg. Still, missing prior interest owed payments of hundreds of millions “reaffirms the coupon watch and concerns that they continue to struggle to make these payments.”

Venezuela has been in a similar situation of payment uncertainty in the recent past, with bond prices plummeting right before a big payment. For example, just before a big principal payment was due in April 2017, Venezuela received a $1 billion loan from Russia just one week before the due date. 

Related: Analysts Raise Oil Price Forecasts

China and Russia have both been eager to help Venezuela in exchange for quick access to the South American country’s oil, as was made clear during U.S. congressional testimonies last Wednesday.

"I would like to emphasize how both Russia and China, in the pursuit of their commercial and strategic interests in Venezuela, have provided capital, goods, services, and political backing that has indirectly enabled the populist regime to ignore and ultimately destroy the mechanisms of democratic accountability," Evan Ellis, of the Center for Strategic and International Studies, told the House Foreign Affairs Committee.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • royal phoenix on October 31 2017 said:
    If the payment does not clear by the 2nd of November, when 1.2 billion is due, then that will be considered a default ? thx royal

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News