Oil prices continued to rise today in response to the brewing conflict between the United States and Iran, injecting much-needed cash into the coffers of the Venezuelan government.
The jump in oil prices follows the assassination of Wasem Soleimani at the direction of U.S. President Donald Trump yesterday. Soleimani–who was one of the most powerful men in Iran–was killed in a drone strike in Baghdad at approximately 1:00 AM local time.
Brent Crude prices jumped 3.55% in trading yesterday closing the day at $68.60. Similar price jumps affected other oil products, including the West Texas Intermediate, the price of which increased 3.5% in trading yesterday.
Venezuela’s oil basket price increased as well, continuing a six-week price increase streak. It ended trading yesterday at $58.32.
Venezuelan Foreign Reserves Hit 30-Year Low
Venezuelan foreign reserves dipped to $6.63 billion dollars, a 30-year low, according to official figures from the Banco Central de Venezuela (Venezuelan Central Bank, BCV).
National Assembly deputy Jose Guerra tweeted about the milestone, saying:
Warning. Brutal fall in the international reserves at the [Central Bank]. January 2nd closed at $6.630 billion, of which less than $1 billion is liquid. This is how thing are, we can’t defend the Bolivar against the [dollars]. Gentlemen, devaluation has only just begun.
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