CARACAS: The price Venezuela receives for its mix of medium and heavy oil fell back below $40 as markets and oil prices around the world collapsed on a surprise decision to leave the European Union by the U.K. According to figures released by the Venezuela Ministry of Petroleum and Mining, the average price of Venezuelan crude sold by Petroleos de Venezuela S.A. (PDVSA) during the week ending July 1 was $39.75, down 41 cents from the previous week’s $40.16.
WTI in New York averaged $48.01 — down $1.28 — for the week, while Brent crude traded in London averaged $48.89 — down $1.36 from the previous week. According to Venezuelan government figures, the average price in 2016 for Venezuela’s mix of heavy and medium crude is now $31.15 for the year to date.
Venezuela’s average oil price for 2015 was $44.65, down from 2014’s $88.42, below 2013’s $98.08, 2012’s $103.42 and 2011’s $101.06, 2010’s $72.43, and even 2009’s average price of $57.01. In 2015, WTI averaged $48.86 — just over half of 2014’s $93.06 — while Brent averaged $53.66 — just over half of 2014’s $99.61. Historically, Venezuela’s basket set its highest weekly average ever on July 18, 2008, when it hit $126.46 before economies around the world began crashing under the weight of expensive oil. The recent low was set January 22, 2016, when Venezuela’s basket averaged just $21.63.
The United States is the largest importer of Venezuela’s oil exports. According to the US Department of Energy, Venezuela was the fourth-largest supplier of imported crude oil and petroleum products to the United States behind Canada, Saudi Arabia, and Mexico. U.S. imports from Venezuela have been on an overall decline in recent years. In the month of October 2015, the United States imported an average of 802,000 barrels per day of crude oil and petroleum products from Venezuela, a decline of 49% from a decade ago.
