Caracas, 08 Jun. AVN.- On November 30, members of the Organization of Petroleum Exporting Countries (OPEC) will assess the Venezuelan proposal to establish a system of oil production ranges to stabilize prices, said Tuesday Venezuela's Minister of Oil and Mining Eulogio Del Pino.
"At the next meeting, depending on how the market evolves from here to November 30, a decision regarding that will be made, that would be like going to a different side from the trends that have been applied in OPEC so far," Del Pino told entrepreneurs who meet every Tuesday at the headquarters of the government of Venezuela to assess the progress of the Bolivarian Economic Agenda.
Del Pino said that after the 169th ministerial conference of the OPEC, held earlier this month in Vienna, Austria, the Venezuelan proposal entered in the resolution issued by the bloc and it was agreed to be evaluated by OPEC technical experts. The decision on the proposal will be announced at a ministerial meeting in Vienna on November 30.
The aim of the scheme is to assign each country a minimum and maximum production, in order to build a production range instead of a price band, so that if a country is having problems the others can reach their top and balance can be achieved.
Del Pino said that this proposal is an alternative to the quota system and the joint production ceiling, two strategies implemented in recent years within OPEC and backed by big producers like Iran and Saudi Arabia.
He added that after the last ministerial meeting of OPEC, oil market has reacted positively with a rise in stock prices.
OPEC decided this month at its ministerial meeting to keep their joint production ceiling of 30 million barrels per day.
Since December 2011 OPEC decided to keep this cap. However, in 2015 and throughout 2016 some of its members like Iraq and Saudi Arabia have increased their output levels causing the organization to pump 32.5 million barrels per day (bpd).
This fact, coupled with the slowdown of China's economy, low fuel demand and the policy implemented by the US to flood the market with oil shale, has caused the price of black gold to slump almost 63% since mid-2014, which is the longest cycle of low prices that has occurred over the last 45 years.
0 comentarios:
Publicar un comentario