OREANDA-NEWS. El Nuevo Herald newspaper reports, citing sources, that Venezuela, which oil industry suffered from US sanctions, the coronavirus epidemic and the price war between Russia and Saudi Arabia, began selling fuel at “surprisingly low” costs.

The publication says that the country does not have enough storage space, so it is forced to reduce production to the level of 450 thousand barrels per day.

Financial consultant Russ Dullen said that Venezuelan oil is sold for less than 5 US dollars per barrel. He noted that no one wants to buy it from Venezuela, with the exception of those who are ready to violate sanctions. According to him, a number of oil wells in the country have already been closed, and the remaining workers were ordered to stop production.

Juan Fernandez, former vice president of the Venezuelan state-owned oil company PDVSA, said that Maya oil produced in Mexico is trading at around 12 dollars. In his opinion, this means that the Venezuelan Merey, quality of which is lower than Mexican, should cost less than 10 dollars.