Venezuela calls for OPEC output cuts

by rahul | November 23, 2008 at 05:54 pm

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Joining Lybian previous calls, Venezuela has also suggested a OPEC output cuts for stabilising world prices. This reduction -of an estimate one million barrels a day- would be proposed during the next OPEC meeting on 29 November 2008 at Cairo. Even though Venezuelan President Hugo Chavez has diminished the effects of reducing oil prices on the local economy, the budgetary provisions made by his financial minister, Ali Rodriguez Araque, are rather childish. Thus, his most efficient counterpart at the Energy Ministry and PDVSA chief, Rafael Ramirez, has come forward with the reduction suggestion.

Sun, 23 Nov 2008 17:48:53 GMT Venezuela has called on the Organization of the Petroleum Exporting Countries to reduce crude output by another one million barrels a day. "Venezuela will propose a new cut in production at the next meeting of the Organization of Petroleum Exporting Countries (OPEC)," Venezuelan Energy Minister Rafael Ramirez said Sunday. The emergency meeting scheduled for November 29 in the Egyptian capital Cairo is expected to focus on the rapid drop of the price of crude from to below USD 50. Light, sweet Crude prices on the New York Mercantile Exchange crude settled at USD 49.93 a barrel hitting levels seen in January, 2007.
Ramirez said the cut would create balance between supply and demand on the troubled oil markets currently oversupplied by at least 1 million barrels per day. Libya, battered by fears of falling demand for crude and global recession, has also called on the 13-member organization to take action over the plunging oil prices. "The oil market needs some kind of action," Libya's OPEC representative, Shukri Ghanem told AFP yesterday. OPEC cut oil production in August by 1.5 million barrels per day but this failed to halt the decline in crude prices, which have fallen by two-thirds since July's record high of USD 147 a barrel. MT/MMN, Original Source at PressTV