More threats to PetroCaribe?

There is a new suggestion that the Petrocaribe deal, of  which Jamaica is a beneficiary, could come under further pressure with the ongiong fall in the price of oil.

According to Bank of  America Merrill Lynch, if  the decline in oil price continues, Venezuela might require additional funding, amounting to US$12 billion, which would require further adjustments.

Last week the Venezuelan oil basket ended at US$77.65 cents per barrel, the lowest price recorded since November 2010.

Venezuelan authorities have scoffed at the oil price decline and have predicted that there will shortly be a rebound. 

    
Bank of  America says, however, that falling oil prices, in the context of an electoral year, could push the country to consider the sale of  some of its international assets, or to access international markets at high costs. It says another alternative is to reduce shipments to Petrocaribe allies, which hit US$8 billion this year.