Venezuela, the world's fifth-largest oil exporter, has struck a $2bn deal to buy about 100,000 barrels a day of crude oil from Russia for its own use until the end of the year.
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Amazingly, Venezuela has been recently been forced to turn to an outside source to avoid defaulting on contracts with "clients" and "third parties" as it faces a shortfall in production. Venezuela could incur penalties if it fails to meet its supply contracts.
The relevant question is how much fuel and environmental damage is being done shipping fuel halfway across the world to a country that produces vast amounts of the product to the international market yet can not for some strange reason retain any for its own use.
As they used to say 'up North' (in England) - ''it's like sending coals to Newcastle''. Well actually coal is now shipped to Newcastle from Argentina or is it beef ? Anyway, it is the same point since there is a supply of both in the North East; though the latter is now more visible than the former.
The relevant question is how much fuel and environmental damage is being done shipping fuel halfway across the world to a country that produces vast amounts of the product to the international market yet can not for some strange reason retain any for its own use.
As they used to say 'up North' (in England) - ''it's like sending coals to Newcastle''. Well actually coal is now shipped to Newcastle from Argentina or is it beef ? Anyway, it is the same point since there is a supply of both in the North East; though the latter is now more visible than the former.
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