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OPEC data show Venezuela oil output in free fall

AFP  |  Caracas 

Venezuelan crashed to a new 30-year low of 1.5 million barrels a day in June, the Organisation of the Exporting Countries (OPEC) said today.

The South American nation earns 96 per cent of its revenue through but a lack of foreign exchange has sparked economic paralysis that has left the country suffering serious shortages of and medicine.

The government of has told company to increase production in the country which sits atop the world's largest reserves of crude.

According to the (IMF), Venezuela's economic collapse is one of the worst in modern history. The has shrunk 45 percent since 2013 and the IMF expects it to contract 15 per cent in 2018 alone, with inflation reaching 13,800 per cent.

Only once during the last 30 years did crude production dip lower, but that was during a brief industry strike from December 2002 to February 2003.

blames the current crash on mismanagement amidst a spate of recent corruption cases and a dip in investments due to a lack of funds.

It also points the finger at the United States, which has imposed financial sanctions on the country and individual companies.

But experts put declining production down to the government's using revenues to plug its fiscal deficit.

Last November, several rating agencies declared and the PDVSA in partial default.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, July 12 2018. 04:39 IST