Venezuela losing $164M/year in oil trade with China

London 23.08.06 | In an attempt to further cement relations and replace the USA as Venezuela's oil main consumer with China, Hugo Chavez is due to arrive today in that country where he will sign a number of trade agreements aimed at boosting PDVSA's decreasing output. Venezuelan officials have stated that the country currently sells 150.000 BPD to China, figure which will be increased to 200.000 BPD by year end.

Venezuela, or rather Hugo Chavez, has accepted a $3 discount per barrel of oil it exports to China. This is caused by longer shipping times and increased insurance payments according to analysts.

What the discount means in real terms is that Hugo Chavez political antagonism vis-a-vis Venezuela's natural market, read the USA, is actually costing us $164 million a year in lost profit and the figure will surge to a whopping $219 million should current plans of increasing sales to 200.000 BPD to China materialize.

The losses could have provided, if common sense and national interests prevailed in the caudillo's deranged head, roughly 63.270 Venezuelans with a yearly income equivalent to the lowest salary, which stands presently at £216/month.

To consciously sacrifice profits for political reasons in detriment to Venezuela and its citizens amounts to treason. Perhaps Manuel Rosales, or his advisers, would like to pick up on that.