SHOT: Concerns mount as Venezuela closes in on petro, an oil-backed cryptocurrency.

A cryptocurrency backed by oil would be a big first. A cryptocurrency backed by a sovereign government would be even bigger.

But while Venezuela claims it is going to do both very soon with the petro, experts are doubtful the country has the capabilities or the characteristics to achieve its goal.

The petro will be dogged by a major question, “Is it redeemable, in other words, can you take physical delivery?” notes finance professor Stephen McKeon of the University of Oregon.

The strength of any currency backed by a commodity, regardless of whether it is physical or digital, is that holders must believe they can exchange it for the actual commodity. When the U.S. was on the gold standard, individuals could bring their dollars to a bank and exchange them for physical gold.

Presuming Venezuela can get the oil out of the ground — quite the presumption, these days — how would you like to take delivery of the physical product? Gold is useful because it its value is portable and divisible in exactly the ways that a barrel of oil is not.

CHASER: Venezuela 2017 annual inflation at 2,616 percent.

Opposition politicians, whose numbers are broadly in line with analysts’ estimates, on Monday put December’s inflation figure alone at 85 percent, well into hyperinflation territory for which the benchmark is usually 50 percent.

“Inflation in December alone is greater than accumulated inflation (over the whole year) for all of Latin America,” said lawmaker José Guerra.

Venezuelan authorities did not respond to a request for comment.

They were too busy dreaming that their DOA cryptocurrency would restore some purchasing power to the Maduro regime and its flunkies.

HANGOVER: Halliburton Says $400 Million Exposure To Venezuela Could Be Problematic.

Unexpectedly.