Bloomberg: U.S. Weighs New Venezuela Sanctions That May Hit Bonds

Home to the world’s largest crude reserves, Venezuela produces a fifth as much crude as Saudi Arabia or the U.S. as a wave of nationalizations and payment delays have cut investment and maintenance at oil fields. Output had already fallen to a 14-year low in July.

“The whole machine is coming apart,” said Russ Dallen, a managing partner at Caracas Capital Markets. “It creates more uncertainty about their ability to make a heavy debt payment in October and November.”