July 22, 2024

Venezuelan President Nicolas Maduro Allocates 30 Million Barrels of Oil to Petro

Venezuelan President Nicolas Maduro said that about 30 million barrels of oil in storage will beused to provide the state cryptocurrency petro.

In the past few weeks amid the introductionnew sanctions by Washington, aimed at restricting the country's access to the international financial space, huge inflation of the national currency and undermining the welfare of citizens, Maduro again began to actively promote Petro. Obviously, the announcement made yesterday also aims to popularize Petro.

“30 million barrels of oil will come toroles of liquid, physical, material support for Petro, — said the President of Venezuela on national television. “Reserves of crude oil and its products will be sufficient for immediate commercialization and support the functioning of the sovereign Venezuelan crypto asset – Petro.”

Initially, the petro was supposed to be backed by 5 billionbarrels of oil not yet produced due to lack of infrastructure. However, plans have recently changed due to an increase in Venezuela's oil reserves, which was caused by a drop in demand from potential buyers due to US pressure.

Recently, the Venezuelan authorities have againstarted actively promoting Petro. Thus, they recently stated that Petro is already accepted by dozens of retail outlets, but the information portal Reuters was unable to find evidence of significant distribution of Petro in commercial activities. Maduro, for his part, did not tell listeners how the country plans to sell oil to supply the petro.