President Nicolás Maduro Moros is facing crowds of protesters in Venezuela.
Our sources tell us that the protesters are complaining of lack of food and medicine. Something well known around the world.
Venezuela is one of the biggest oil producers in the world.
Protosters are being arrested and tortured in jail.
Former president Hugo Rafael Chávez Frías recommended Maduro to be elected as president.
For his fourth term as president in the October 2012 presidential election, Chavez returned from medical treatment in Cuba (Cancer) and died on March 5,2013.
THE OIL CURSE
Many oil producing countries have gone through turbulent times.
Extracting oil and natural gas has become very cheap and the producers of both in developing countries face a challenge.
Just in Africa alone, you can read about the riots in Biafra in Nigeria.
Recently Uganda made a deal with Tanzania to build the oil pipleline to Tanga port and shunned the one which had been previously discussed with Kenya.
Where oil traded as high as nearly $200 per barrel, it is now sitting at $47.78 a barrel. http://www.theinsider.ug/uganda-shilling-and-global-market-report-may-20-2016-2/
In February 2015, while addressing investors in the Middle East, the CEO of French owned Total EP said that they hoped that oil would recover to the break even price of $60 a barrel in 2016 or 2017. http://www.reuters.com/article/total-oil-idUSL6N0VE16Y20150204
Saudi Arabia has the biggest deposits of oil in the world and their break even price is $9 a barrel.
Canada has the second biggest deposit of oil next to Saudi Arabia.
USA has developed effiencies and can produce enough oil and natural gas to beat any price.
Countries which have traditionally relied on oil are in pain now. Oil is cyclical and they need to analyse the pattern of oil and how it can hurt the GDP.
Uganda is a new player in oil and it already has the Tullow and Total mediation things to deal with.
You can find the business section on our website. Every Friday has a piece on the shilling, dollar, gold, coffee, oil and a summary of world global markets.
Martha Leah Nangalama
The writer has an IT and business background.