Venezuela Asks China For Help As Riots, Electricity Rationing Take Toll on Oil Production

Venezuela is currently caught in a self-defeating death spiral, with declining oil production leading a circular chain reaction that crushes hope that the government can quickly emerge from trouble. What might result is a change in government, which is one reason the country’s Chinese backers are none too eager to providing a financial lifeline – for fear that they are throwing good money after bad. A key component of the crisis, a Barclays report notes, is that electricity rationing, which primarily impacted Venezula’s general population first, is now making its way into oil production, further reducing output at a time when revenue is desperately needed. But another force taking shape – free markets boosting prices – is also at...