Two of Latin America's oil exporters hit hard by weak oil prices, Ecuador and Venezuela, find relief in China's pledge to provide billions of dollars in financing aid.

In what was seen as a measure to secure allies and resources in South America, Beijing has become the most generous overseas financier of its two fuel-producing, left-leaning allies looking to counter U.S. influence in the region.

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As prices of crude sharply fell by at least 50 percent from a couple of months back, Ecuador and Venezuela were in desperate need for cash after losing a big chunk of oil revenues that would pay for heavy public expenditures.

Venezuela has to sell oil at about US$117.50 a barrel to generate enough money for its 2015 budget, based on Deutsche Bank forecasts. On Wednesday, a barrel of oil fetched about US$50 in the world market.

Venezuela's president, Nicolas Maduro, whose popularity ratings followed the rise and fall of crude prices, disclosed few details on China's financing pledge, which he said covered projects in the areas of housing, industry and energy.

The agreement signed on Wednesday showed China's consistent support for Maduro despite his wavering popularity, said a senior Latin America analyst for Eurasia Group.

The analyst added China has substantial investments in Venezuela and Beijing is likely worried about a possible change in regime.

China has achieved a "new height" in ties with Latin America.  Premier Li Keqiang visited Brazil, Venezuela, Argentina and Cuba in July this year, while attending the BRICS summit and meeting with his Caribbean and South American counterparts.

The visits led to the signing of more than 150 cooperative agreements in mining, energy, and infrastructure worth US$70 billion. The visit and deals came less than a year after Xi's first visit to Latin America as China's head of state in 2013. 

TagsSouth American allies, Venezuela, Ecuador, oil price, financial aid