Venezuela is coping with fuel shortages and declining exports during its struggle to prop up its ailing energy sector. Vessels initially bound for the United States have been seen diverting to Venezuela to help address the issue. Meanwhile, in a speech last week, President Nicolas Maduro pledged to increase crude oil production from the current level of around 1.1mn bpd to 5mn bpd by 2025, a goal that seems close to impossible at this point.
But energy challenges only scratch the surface of the problem. Maduro’s government quelled a mutiny this week, just a few shorts days after his swearing in for a new six-year term. Military support is vital for whatever political structure is in place in one of OPEC’s founding members and the uprising signals a potential breakdown in order. Maduro will face mounting pressure on Wednesday amid expectations of nation-wide demonstrations.
Our lead Latin American analyst, Amir Richani, offered this breakdown in a Monday segment on Turkey’s TRT World. Click on the image to launch to the clip: