There's a big oil story flying under the radar

Saturday, 11 November 2017, 05:29:44 PM. 'We caution against taking one’s eye off the looming sovereign debt crisis in Venezuela that could further curtail output from the stressed state.'
Carlos Garcia Rawlins/Reuters Venezuela is creeping closer towards formal default. There's speculation that Venezuela missed its full $1.1 billion bond payment last Friday. President Nicolas Maduro announced his country will have to restructure future debt payments. Rising tensions between Saudi Arabia and Iran, as well as the kingdom's weekend crackdown, have drawn the attention of oil watchers. But there's another big oil story flying under the radar that should not be overlooked: Venezuela is creeping closer towards a formal default. "We caution against taking one’s eye off the looming sovereign debt crisis in Venezuela that could further curtail output from the stressed state," Helima Croft, head of commodity strategy at RBC Capital Markets, said in a note to clients. RBC Capital Markets There's speculation that Venezuela missed its full $1.1 billion payment on a bond issued by its state-oil company, PDVSA. It was due last Friday, but the Financial Times reports that "while some bondholders said they expected the money to arrive soon, others pointed out that the payment deadline had clearly been missed regardless." And last week, President Nicolas Maduro announced Venezuela is aiming to restructure future debt payments, raising questions about the state's and its oil company's ability to make the remaining payments in 2017 and 2018. "Any restructuring effort will be greatly complicated by the August sanctions that bar any US regulated financial institution...Read more
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