Economist Caram criticizes Venezuela’s oil threats against Dominican Republic

Santo Domingo.- Economist Guillermo Caram has criticized Venezuelan President Nicolás Maduro and Diosdado Cabello for their claims that Venezuela is using its oil as a weapon against the Dominican Republic. Caram described these statements as mere boasts, arguing that they stem from a misconception that Venezuelan oil is provided at reduced or no cost, similar to arrangements with countries like Cuba and Nicaragua.

Caram explained that agreements such as San José and Petrocaribe involve supplying oil to neighboring countries with a portion of the cost financed. This setup is essentially a credit arrangement that could eventually turn into foreign debt. He clarified that Venezuela has never provided oil at discounted prices or for free.

He further noted that the oil supplied under these agreements allowed Venezuela to manipulate global crude oil prices by cutting production. The unpaid portion, covered by consumers paying market prices, has been used by Venezuelan governments to finance fiscal deficits, contributing to poor fiscal practices and harming the country’s economy.