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OPEC May Cut Production in 10 Days to Prop Up Falling Prices
The Organization of Petroleum Exporting Countries (OPEC) may cut production by 500,000 barrels per day (bpd) in 10 days if the prices in international markets kept falling, its president said, quoted by local media reports on Saturday.
Ali Rodriguez, who will resume the post of OPEC secretary- general on January 1, said OPEC, which accounts for 40 percent of world supply, will follow the situation more closely and take appropriate decisions on January 17.
According to the price band system approved last March by OPEC, the organization will automatically increase or reduce its production by 500,000 bpd if prices remain within its 22-28 dollar per barrel target range for 20 consecutive days.
This year, OPEC has increased production four times in efforts to maintain oil market stability.
On Friday, Venezuelan oil price dropped by 4.32 dollars to 21. 26 dollars per barrel, while OPEC's price fell 1.95 dollars to 22. 94 dollars.
Meanwhile, the prices of North Sea Brent oil and West Texas Intermediate oil also fell by the end of the week.
Rodriguez blamed the downturn in oil prices on the oversupply of 1.4 million bpd in international markets.
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