Venezuela considers OPEC crude production cut if oil prices fall further

Venezuela, which boasts the largest proven oil reserves on the planet is considering cutting it’s crude oil production if oil prices continue to tank further according to Energy Minister Rafael Ramirez in comments made yesterday ahead of Friday’s OPEC meeting in Vienna.

Latest WTI Oil Price

In London, US Light crude oil futures for July 2013 delivery was trading at $93.91 a barrel, 08:50 GMT this morning in electronic trading on the NYMEX. WTI Light sweet crude dropped 54 cents to $93.61 a barrel yesterday afternoon.

OPEC Oil Production

OPEC boosted production to 30.21 million barrels a day in April from 29.93 million in March while maintaining a flat forecast for global demand.

“We have a joint production level of 30 million barrels per day… that we can maintain in order to keep prices at $100 a barrel (assuming this is for Brent). If during the discussions fears are expressed that such a level of production could affect prices, we would be open to a cut in production.” Ramirez said.

However, OPEC may leave the group’s output target unchanged at this week’s meeting in Vienna because increased demand in the next few months will help maintain the commodity’s price, a local energy analyst said.

“With summer approaching, OPEC countries will need to keep production high to meet seasonal local energy demand. Prices are subject to very limited volatility this year, and they are at a level every producer was dreaming about without hurting demand and consumers.” said Sadad al-Husseini, who founded Husseini Energy, an independent energy consultant in Dhahran, Saudi Arabia.

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Venezuela considers OPEC crude production cut if oil prices fall further