Venezuela is currently caught in a self-defeating death spiral, with declining oil production leading a circular chain reaction that crushes hope that the government can quickly emerge from trouble. What might result is a change in government, which is one reason the country’s Chinese backers are none too eager to providing a financial lifeline – for fear that they are throwing good money after bad. A key component of the crisis, a Barclays report notes, is that electricity rationing, which primarily impacted Venezula’s general population first, is now making its way into oil production, further reducing output at a time…
Venezuela Asks China For Help As Riots, Electricity Rationing Take Toll on Oil Production
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.