The news did not go down well among Venezuelan president Nicolás Maduro’s opponents: according to Reuters, the country is to receive a shipment of crude from Algeria on October 26.Well, opponents can be dealt with in Venezuela. Foreign exchange, is another matter;
Venezuela produces extra heavy crude in oil fields located in the southeast of the country. Because it is so dense, the oil needs to be blended with other components before being processed at local refineries.Which have to be paid for in USD or Euros.
The high cost of naphtha, the diluent used to transport the viscous crude along the pipelines, was making a big dent in Pdvsa’s [USD] accounts. Now, according to Reuters, Caracas has decided to sign a contract with Algeria to purchase Saharan Blend, an extra light crude that is easier to refine. This should ease the burden on the state oil company, which already contributes $96 of every $100 that the state collects in taxes.
The measure should go mostly unnoticed by the general population. President Maduro is so far refusing to raise the price of gas – which is practically given away....Which is why they don't have toilet paper. Have they noticed that?