Venezuela, Colombia and Ecuador sold oil below the cost of production

Venezuela, Colombia and Ecuador sold oil below the cost of production

A barrel of oil brand Colombian vasconia S. A. B. is close to 20 dollars, and Venezuelan DCO sold for $ 15 per barrel. On the eve of the fall of the price of its oil below cost also said Mexico.

MEXICO city, 22 Jan –. The catastrophic drop in world oil prices has led Venezuela, Colombia and Ecuador to the need to sell their oil at a price below the cost of production, reports on Thursday Reuters with reference to sources in the oil companies of these countries.

Thus, the DCO crude oil from Venezuela is sold at 15 dollars per barrel, while a barrel of Colombian vasconia S. A. B. is less than 21 dollars. Ecuador its oil also sells at a price below cost, said earlier the President Rafael Correa.

Venezuela is among the top 10 largest exporters and covers about 3.7% of the market, Colombia — 1.8%, and Ecuador — less than 1%. Previously on falling prices its oil below cost reported in Mexico (2,5% of world exports), although the head of the local state oil company Pemex later explained that we are talking about the cost of new deposits and the overall Mexican oil profitable despite falling prices.

The latest data of the state oil company of Venezuela PDVSA testified that the production cost of a barrel here is $ 18. In Colombia, the rate ranged from 20 to 22 dollars in the third quarter of 2015. “Last week we were exactly on the mark of balance, but now we have already fallen (with the price of a barrel) below this line”, — said a source in the largest private oil company Columbia Pacific Exploration and Production.

Since the beginning of summer 2014 oil prices have fallen almost four times — from 115 to less than $ 30 per barrel. Fundamentally the decline is due to the high level of production with slower demand, including because of the situation in China.