Venezuela Needs Oil's Rally More Than Anyone as Economy Teeters
- Country will default in 2016 barring oil rebound, bailout: FGE
- Power shortages, oil-service cutbacks weigh on crude output
Oil Producer Earnings Shake Off Low Price Pressure
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Few countries need oil’s rally to last more than Venezuela, where the economy’s expected to shrink 8 percent this year and a lack of petrodollars has seen shops run short of consumer goods.
The Latin American nation with the world’s largest oil reserves relies on crude shipments for 95 percent of export revenue. It will default this year barring a large jump in the oil price or a financial bailout, said Thomas Olney, a London-based analyst at consultants FGE. Credit-default swap traders have put the chances of non-payment through June next year at 67 percent, according to data compiled by Bloomberg.