Venezuela Ups Oil Exports to China

[Marina Schwarz + 1,576]

"Venezuela is to increase its oil exports to China to one million barrels a day, President Nicolas Maduro said on Tuesday, just days after visiting the Asian powerhouse. Maduro said each country would invest "around five billion dollars" in the project by August 2019. Private sector estimates put the current export figure to China at around 700,000 barrels a day."

How exactly is this going to happen with production falling steadily?

[Jan van Eck + 7,558]

56 minutes ago, Marina Schwarz said:

"Venezuela is to increase its oil exports to China to one million barrels a day, President Nicolas Maduro said on Tuesday, just days after visiting the Asian powerhouse. Maduro said each country would invest "around five billion dollars" in the project by August 2019. Private sector estimates put the current export figure to China at around 700,000 barrels a day."

How exactly is this going to happen with production falling steadily?

Short answer: it won't.  At least, not in the short term.  And if the Chinese are involved, you already know that they will be picking up that oil at a discount to the world market price.  How big is the discount?  Only they know. Won't be trivial; the Chinese don't do "trivial."

Meanwhile, back at the ranch, you have this behavior from Mr. Maduro, not exactly a man to show any personal restraint, while 87% of his countrymen live in abject poverty, the people starving, the hospitals stripped bare of even a simple bandage, the sick left to rot and die:

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What a lovely fellow, that Maduro. Real class act.

[Marina Schwarz + 1,576]

Yeah, I figured the Chinese will have to splash on field maintenance. Which is smart, though. They have the world's largest reserves at their disposal.