Venezuelan oil basket drops USD 102.76 per barrel in a week

The Venezuelan oil basket reported a USD 2.31 decline (2.19%) compared to last week and closed at USD 102.76 per barrel this week, informed the Venezuelan Ministry of Petroleum and Mining. 

The ministry explained that prices went down mainly due to a sudden leap of US oil commercial stock reserves and the possible release of its strategic oil reserves in an attempt to preclude higher prices.

Saudi Arabia's recent announcement of an imminent increase of its oil production to keep the market well stocked and prices down is also accountable for the global downfall in oil price. Saudi Arabia fears that a dramatic rise in oil price may have a potential impact in the global economy, leading to another recession period worldwide that may affect the value of hydrocarbons as in 2008.

Translated by Jhean Cabrera