Maduro Says Venezuela To Base 2015 Budget On $60 Oil; Says There Will Be No Economic Collapse

Venezuela has the financial capacity to continue to promote national development in all social and economic areas despite the recent fall in oil prices, Venezuelan President Nicolas Maduro said on Friday night during a national broadcast, Venezuela’s national news agency Agencia Venezolana de Noticias (AVN) reports.

Maduro said during the national broadcast that Venezuela will base its 2015 budget on an estimated oil price of $60 per barrel.

Since June, oil prices have plunged over 25% as weak demand, strong supply, and as key oil producers have showed a reluctancy in cutting output to try to boost prices.

On Friday, U.S. November crude prices settled at $82.75.

Maduro reiterated that oil prices would eventually rebound as he slammed “nation-hating” right-wingers who hope that the falling oil prices will bring down his government.

“We’re tightening the screws so that not one single dollar is spent on what it shouldn’t be spent on,” Maduro said.

“There will be no catastrophe or collapse here,” Maduro said, adding that the pessimistic predictions of an “economic debacle” of the country would be “invalidated.”

Maduro said that the U.S. was aiming to flood the global oil market to destabilize Russia and stressed on the need for OPEC to meet before the scheduled meeting on November 27.

“Look…oil could fall to $40 and I would guarantee these people all their social rights, education, health, food, life … Venezuela has guaranteed its resources to continue to prosper,” Maduro said.

“We have the financial capacity to finance in the national currency all the projects the population needs,” he said, adding that the 2015 budget will be presented to the National Assembly next week.

Venezuela, who relies heavily on oil, as it accounts for 96% of export revenue, recently called on OPEC to hold an emergency meeting to discuss action that needs to be taken to arrest the plunge in oil prices; however the group of OPEC countries have signaled that they will not likely take heed to Venezuela’s desperate calls.

The fall in oil prices comes at a particularly bad time for Venezuela amid the nation’s soaring inflation, a plunge in the value of the national currency to all-time lows, depleting foreign currency reserves (currently at the lowest level since November 2003), weak or contracting economic growth (the Venezuelan government has suppressed official GDP data), food and product shortages, fleeing global airlines and manufacturing firms, tremendous debt challenges, and a growing risk of a sovereign debt default (here, here, and here).

Source: Agencia Venezolana de Noticias