Venezuela and the Outlook for Oil

400The last Newsletter ended with a suggestion that US marines might soon be setting foot in Venezuela. The fact is that America has been spending a lot of money financing the opposition in this oil-rich country and has been fomenting regime change as a matter of course. The reason for this policy is not only hate for Hugo Chavez and his successor Maduro but rather the huge oil reserves that Venezuela has, which are the largest in the entire world.

It is simply simplistic to think that American imperialists do not have their eyes on all the oil that is just waiting to be exploited. The presstitute propaganda machine has been hammering away at the present regime without mentioning that the current financial woes of Chavez`s homeland are to a great extent the result of American sanctions.

Oil production has fallen in Venezuela not only due to inefficiency and corruption but mainly because the national oil company cannot obtain the parts and materials needed because the US has for years been blocking all efforts to keep production high. The fall in the oil price is not the only reason why the Venezuelan economy is in a shambles. The CIA wants regime change and does not care if this results in misery, even starvation, for large numbers of people.

Despite all the MSM hype about alternative sources of energy and sustainability, oil is going to remain important for the global economy for many years to come. The price of WTI is currently just over US$ 50 and Brent a bit over US$ 56. The outlook is that demand will continue to increase while OPEC tries to curb supply to keep the market balanced. This would mean that prices should increase moderately in Q4 2017. The basic premise, of course, is that no geopolitical disturbances occur.

Should hostilities in the Middle East widen to include Iran with a consequent blocking of the Strait of Hormuz, the price of oil would very quickly be much higher. If that should happen, it is highly likely that the US would try to overthrow the Venezuelan government in order to take control of the oil reserves in that country and increase production, thereby reaping huge profits. Given the previous disclosure of Deep State plans for regime change world-wide, it would not be surprising if the US military has not already prepared plans for the invasion of Venezuela. It would not be necessary at first to occupy the whole country, only the oil producing areas mainly in the eastern part of the country, including the Maracaibo Basin. All the money already spent on destabilizing the regime would turn out to be a good investment. 


Walter Snyder




Disclaimer This Newsletter has been prepared by WWS Swiss Financial Consulting SA (the company). Even though every effort has been taken to ensure the accuracy of the content of the Newsletter, there is absolutely no guarantee that the information contained in it is correct, up-to-date, accurate or otherwise applicable. It is not intended as a solicitation, invitation or recommendation for the purchase or sale of any investment fund or product or security or financial instrument or to participate in any particular trading strategy or banking product in any jurisdiction. It is not to be distributed in any country or area where it is legally prohibited. No liability whatsoever is or will be assumed by the company for any damage, loss or negative result of any sort ensuing from following views expressed and contained in the Newsletter. Investors themselves assume the full risk for any decisions that they take (caveat emptor). The Newsletter may not be reproduced or published by anyone anywhere in any way or form without the express written permission of the company. 


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