Oil analyst believes that Venezuelan oil revenues in 2009 will not meet basic needs

Based on a production cost of USD 7 to USD 8 per barrel, and an average price of USD 40, Quintero estimates that in 2009 Venezuela will receive USD 20 billion from total oil revenues, compared to USD 60 billion in 2008

Venezuelan oil basket stood at USD 32.14 on December 19 (Photo: Nicola Rocco)

Economy
Heliodoro Quintero, oil analyst and former Venezuela's governor to the Organization of Petroleum Exporting Countries (OPEC), thinks that a Venezuelan oil basket with a price of USD 40 is a feasible scenario for the country in 2009. With this price, oil revenues would be even lower than the amount that the country allocated for importing beverages and food.

Quintero said a scenario with higher oil prices is unlikely. According to the oil expert, a more likely option would be a downward trend. He dares to make projections assuming that OPEC decisions succeed and push the local oil basket up to USD 30, USD 40, USD 45 and even to USD 50.

Based on a production cost of USD 7 to USD 8 per barrel, and an average price of USD 40, Quintero estimates that in 2009 Venezuela will receive USD 20 billion from total oil revenues, compared to USD 60 billion in 2008.

He added that in 2008, imports of goods totaled USD 50 billion, and half of them were related to food and beverage products. As a result, oil revenues will be insufficient to cover these items in 2009.

Translated by Gerardo Cárdenas

Cristina Hossne
EL UNIVERSAL

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