Saturday, April 11, 2009

Venezuela's to do list: Sell China 1 million barrels oil/ day by next year

Chavez's tour de Asia produced a new bit of news on Friday:

"I proposed that given the global situation we study the possibility and we agreed to move up the target set in the strategic accord for 2013," said Chavez on Friday.

Basically this means that in the context of the current global economic crisis Venezuela needs to increase its oil revenues which account for about 90% of the country's budget. Second, China which only a year ago was paying astronomical prices for all its commodity inputs (including oil), is now on a shopping spree in order to secure future supply while the price is good.

Click here to access a concise article which covers the major points on this development from Rigzone -- Efe