The global oil market faces a sharp drop in supply in 2017 from Venezuela, traditionally a prominent exporter, as an acute political and economic crisis halts investments needed to squeeze more crude from wells, Columbia University said in a report released on Tuesday.
As the political opposition pushes for new elections to replace President Nicolas Maduro, Venezuela’s economy has worsened, creating doubts about the ability of the Organization of the Petroleum Exporting Countries (OPEC) member to pay its external debt. Its largest industry, oil, is slowing down and showing signs of mismanagement.
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