Venezuelan Minister Calls for OPEC Production Cut

Venezuelan minister calls for OPEC production cut

CARACAS, Jan. 30 (Xinhua) — Venezuela’s Energy and Petroleum Minister Rafael Ramirez on Monday called on the Organization of Petroleum Exporting Countries (OPEC) to prepare itself for a new production cut, according to reports from Vienna.

On the eve of a meeting of OPEC officials in Vienna, Ramirez, who is also president of Venezuelan state petrol company Petroleos de Venezuela, said that the market is overstocked, citing an overproduction of some 2 million barrels a day.

Ramirez said that maybe during this meeting it will be necessary to “keep things as they are.” However, he recommended OPEC members prepare for a cut at the next OPEC meeting on March 8.

“Our position is that maybe the best is to wait until March, early in March, in order to cut, something like 1 million barrels per day,” he said.

Ramirez blamed the rising oil prices on the confrontation between Iran and the United States over Iran’s nuclear program.

Venezuela, a founder member of OPEC, and the only American country in the cartel, can produce up to 3.3 million barrels per day at an acceptable price for the market, said Ramirez.

Most OPEC members believe that current production levels are appropriate for maintaining market stability.