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Venezuelan Experts Applaud Oil Production Cuts
Venezuelan experts applauded the Organization of Petroleum Exporting Countries (OPEC) decision on January 17 to cut oil production, saying that the decrease will help stabilize the international market.
President of the Venezuelan Oil Chamber, Hugo Hernandez Rafalli, told local press that because a lower production volume will be compensated by a higher price, Venezuela's economy will not be adversely affected.
He added that OPEC countries' unanimous decision to cut production is a show of strength.
Referring to another cut in March, he said that the organization should consider possible adverse effects on other countries.
The former president of Venezuelan Oil (PDVSA), Humberto Calderon, believes the decision is correct and "is a measure more reasonable than a price drop."
He added that maintaining stable oil prices is in the interest of both consuming and producing countries.
On January 17,10 OPEC member countries approved a production cut of 1.5 million barrels of oil per day, in an effort to push up international prices that had fallen to US$22 per barrel. Venezuela's production capacity has been reduced by 174,000 barrels per day.
Despite the announcement of the cut, oil prices still dropped because consuming countries had anticipated OPEC's decision.
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