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OPEC Will Not Continue Cutting Oil Production
The Organization of Petroleum Exporting Countries (OPEC) has not yet made a decision to further cut oil production, Venezuelan Minister of Energy and Mines Alvaro Silva Calderon said on Monday.
"A new oil production cut depends on what happens from now until March, when the Organization heads will meet," he told local press.
There is still oversupply in the oil market, which worries producing nations.
"Inventories, in our opinion, are within rational limits. But should an oversupply situation continue, inventories could skyrocket, which would not be not beneficial," said the minister, who added that talks between oil consumers and producers have been productive and that they have agreed that the US$25 per barrel of oil price will not damage the world economy.
He said that the deceleration of U.S. economic growth cannot be blamed on oil prices.
OPEC has become stronger after the January 17 meeting, in which it decided to cut total oil production by 1.5 million barrels per day as of February 1 to prevent oil price volatility.
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