• 5 minutes Is Pete Buttigieg emerging as the most likely challenger to Trump?
  • 7 minutes Can LNG Kill Oil?
  • 8 minutes Question: Why are oil futures so low through 2020?
  • 11 minutes US Shale: Technology
  • 6 hours “The era of cheap & abundant energy is long gone. Money supply & debt have grown faster than real economy. Debt saturation is now a real risk, requiring a global scale reset.”"We are now in new era of expensive unconventional energy
  • 10 hours CoV-19: China, WHO, myth vs fact
  • 6 hours Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 10 hours Blowout videos
  • 15 mins Has Trump put the USA at the service of Israel?
  • 14 hours Democrats Plan "B" Bloomberg Implodes. Plan "C" = John Kerry ?
  • 2 days Question - What if there are no buyers for Chevron's Appalachia Assets?
  • 22 mins Oil Stocks
  • 1 day Natural Gas
  • 2 days Cheap natural gas is making it very hard to go green
  • 2 days Energy from thin air?
Oil Prices Fall As OPEC+ Refuses To Act

Oil Prices Fall As OPEC+ Refuses To Act

Oil prices fell on Friday…

Uncertainty Brings An End To The Oil Price Rebound

Uncertainty Brings An End To The Oil Price Rebound

The latest five-day oil rally…

Venezuela Suspends Trade In U.S. Dollars

Venezuela

Venezuela has told oil traders it will no longer accept or offer U.S. dollars in payment for crude oil and fuels, the Wall Street Journal reports, citing sources familiar with the developments. As a result, traders have started converting dollars into euros, and PDVSA’s foreign partners operating in the country may have to switch to euros as well.

At the same time, Reuters reports, Venezuela yesterday suspended the sale of U.S. currency through its Dicom auction system that President Nicolas Maduro said the government will use to switch from dollars to a basket of other currencies.

The decision comes on the heels of fresh U.S. sanctions that effectively aim to tie Caracas’ hands with the issue and sale of new debt, which increases the danger of it defaulting on existing loans. As a counter move, Caracas is moving to a combination of yuans, Russian rubles, and euros to cushion itself against the sanctions. PDVSA, according to the plan, will do half its oil and fuel trades in currencies other than the greenback.

Venezuela’s Energy Minister Eulogio del Pino said PDVSA is about to start invoicing oil sales to India in rupees, and to China in yuans. Although Russia was not mentioned, an official from the energy ministry said the state oil company does hope to sell Russia oil for rubles.

Related: Can Putin Bring Peace To The Korean Peninsula?

According to a source from the financial industry who spoke to Argus Media, Maduro’s plan to cut off the ties between Venezuela’s oil industry and the greenback is doomed. According to him, while Venezuela’s clients in India and China could benefit from the invoices in rupees and yuans, Venezuela may well lose money in the conversion to dollars, in which it announces PDVSA’s revenues.

Venezuela’s central bank has currency reserves of about US$9.8 billion. This fall, Caracas has pending loan payments of about US$4 billion.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage


Leave a comment
  • Naomi on September 15 2017 said:
    As an economist with a fourth grade education Maduro makes a pretty good bus driver. When his army gets hungry it will take the wheel.

Leave a comment

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