By: Economic & Finance Report

Latin America being a huge commodities exporter especially for oil, is unwilling to produce more oil because of the uncertainties currently in Europe, particularly the crises between Russia and Ukraine. The region is usually able to produce excess of oil, but currently it is unwilling to do so.

There has also been the notion of under developmental aspects of production in the region as well. The region has been ill equipped in advanced technology for exploration and production of excess oil. The biggest producer of oil production, Brazil has been able to be stable but other countries in Latin America have increased instability, brought on from causes of political, economic and geographical challenges.

The crises between Russia and Ukraine has added to the turmoil and Latin America has taken a very conservative approach in producing and pumping out more oil. The demand has also been dwindling for the past decade in the region, as more renewable and sustainable energy alternatives are being cultivated. -SB

Image Source: The World Economic Forum

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