/ world today news/ The catastrophic drop in global oil prices has caused Venezuela, Colombia and Ecuador to sell their oil at a price below the cost of its production. The information was spread by RIA Novosti, citing Reuters and sources in the oil companies of these countries.
Venezuela’s DCO crude is selling for $15 a barrel, and Colombia’s Vasconia is worth less than $21. Ecuadorian oil is being sold below cost, President Rafael Correa said earlier.
Venezuela is among the top 10 largest exporters and covers about 3.7% of the market, Colombia has 1.8%, Ecuador – less than 1%. Earlier, Mexico reported oil prices falling below cost (2.5% of world exports), although the head of the local state-owned oil company Pemex later explained that it was the price of oil from new wells, and overall, Mexican oil is profitable despite falling prices.
Since the beginning of the summer of 2014, oil prices have fallen almost fourfold – from 115 to less than 30 dollars per barrel. The decline was mainly due to high mining volume amid reduced demand, including due to the slowdown in the Chinese economy. / RIA Novosti
Mexico / Mexico
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