As the price of crude oil has collapsed in recent weeks, Americans have celebrated as the price of gasoline followed suit. But in Venezuela, where oil is the country’s economic lifeblood, the collapse is pushing a country already on shaky ground to the edge of default.
In Venezuela, long lines for even the most basic products like toilet paper, toothpaste, soap, and even food. All of the goods continue to be scarce as Venezuela’s economy collapsed as the price of oil plummeted over the last year and the consumers, especially poor consumers, are becoming desperate.
“That’s the most scary part,” said Demetri Belov. “Those are the ones that are gonna get really angry. They cannot be stopped.”
As Venezuela’s people continue to struggle, the country’s president, Nicolas Maduro, has been in the Middle East trying to convince OPEC partners to cut production to help raise the price of oil back up to levels that can sustain Venezuela’s government.
Maduro said that he’s finalized billions in financing from Qatar and China, according to Bloomberg. But Venezuela’s problems run much deeper and OPEC’s leaders are showing no signs of making any changes to output to stabilize prices.
Venezuela’s economy is predicated on oil costing $117.50 per barrel, according to the Wall Street Journal, and the country depends on oil prices for 95 percent of its export revenue. The price of oil on Tuesday closed at $46.59 a barrel after earlier in the day falling to $45.19 a barrel, the lowest price seen since the spring of 2009.
Still, with no bottom in sight for oil speculators and dealers; Venezuelans will likely continue to face long lines and scarce supplies.
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“I have family and friends that tell me they have to be in lines for hours, every day,” Belov said.
It’s creating a shipping boon though as families in areas like South Florida that can afford it are shipping packages as often as possible with everyday items.
