Venezuela in particular faces interesting challenges with this price drop, as its national income dwindles and its economy slowly grinds to a halt. Among the largest global producers of oil, Venezuela has the largest reserves in the world (totaling something in the range of 300 billion barrels of crude oil). Oil comprises some 95 percent of Venezuela’s total export earnings. And given the political instability and economic stagnation the country already faces, the International Monetary Fund (IMF) estimates that the Venezuelan government requires an average prices of about $120 per barrel of crude oil to balance its budget.
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