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Venezuela Proposes Oil Prices Between US25-28 DPB
Venezuela, the world's third largest oil exporter, prefers a price between US$25-28 per barrel (dpb) for the Organization of Petroleum Exporting Countries' (OPEC) basket of seven crude oils, said Alvaro Silva, the Minister of Energy and Mines, on Tuesday.
A price below that recommended level could cause problems for the oil organization, said the minister.
He said the range fixed by OPEC is between 22-28 dollars, but may be between 25-28 dollars, without causing any disruptions.
Silva said consumer countries consider a price between 25-28 dollars a barrel acceptable, "This is perfectly acceptable to the world's economy."
OPEC lowered production by 1.5 million barrels a day February 1, in order to prevent a glut of excess oil during the second three- month period, when winter's demand goes down.
On its behalf, Venezuela cut 174,000 barrels a day, leaving its daily production at 2.9 million barrels.
Analysts indicate that excessive oil dependency, the increase of criminality, as well as the economic slowdown in the U.S., and the supposed cut back of imports, are main risks for Venezuela's economy during the year 2001.
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