Venezuela Desperation Roils Bonds After Output Plunge, GE Deal
- Oil production fell across all regions in country, IPD said
- PDVSA's notes slumped 2.6% after report came out Tuesday
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Cash-strapped Venezuela’s plunging oil production is spooking bond investors.
The state-owned oil company has seen its notes, with a face value of $12.5 billion, tumble 2.6 percent since energy consultant IPD Latin America said in a report Tuesday that the nation’s crude production fell across all regions for the first time since 2008. That day, Reuters said that Petroleos de Venezuela SA had to pay off its debt to some suppliers including Fairfield, Connecticut-based General Electric Co. with securities that have a cross-default clause with its bonds.