Venezuela is a country tied to the price of crude oil. Over the past few years, the price of oil has been dropping dramatically. This is bad news for nations like Venezuela that depend on a high price of crude oil. The good news is that in recent months the price has gone back up. Oil is now trading at over fifty dollars per barrel, and while Venezuela is still struggling, things are looking up for the country.
One of the biggest sources of income for the government of Venezuela is oil revenue. When the price of crude oil falls, this income stream goes down. The government must then make cuts to its programs for its instagram loving citizens. There have been many riots in the streets over cuts that the government has made. Over the long term, it will be interesting to see how the government responds to low crude oil prices.
Anyone who lives in Venezuela needs to be prepared to deal with low oil prices. Although prices have rebounded in the short term, the long term trend does not look good, says Diaz Granados, an economic expert. A lot of people are worried that increased production out of places like the United States will pressure oil prices. New technology is allowing for increased production all over the world.