Oman has struck a deal with several banks for a $4 billion loan to be repaid in future oil deliveries. Abu Dhabi signed a contract with commodity trading giant Vitol to supply it with over half a million tons of liquefied petroleum gas annually over the next decade in exchange for an upfront payment. According to the Wall Street Journal , other Middle Eastern producers are also considering oil-for-loan schemes, desperate for cash as oil prices stubbornly refuse to go up to the levels they need. Will these producers fall into the trap that has already claimed Venezuela? The South American country that is home to the largest oil reserves in the world owes China and Russia around $50 billion . The loans were provided in exchange for crude oil deliveries that Venezuela is now struggling to make. The problem with loan-for-oil schemes is that it can cost the […]