• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day Does Toyota Know Something That We Don’t?
  • 4 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 1 day World could get rid of Putin and Russia but nobody is bold enough
  • 4 hours America should go after China but it should be done in a wise way.
  • 4 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 3 days China is using Chinese Names of Cities on their Border with Russia.
  • 4 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 3 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 4 days Putin and Xi Bet on the Global South
  • 4 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 5 days United States LNG Exports Reach Third Place
  • 5 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 9 days huge-deposit-of-natural-hydrogen-gas-detected-deep-in-albanian-mine

Breaking News:

Chicago Files Suit Against Big Oil

Traders Cautiously Optimistic About Crude

Traders Cautiously Optimistic About Crude

In the forthcoming week, traders…

Venezuela Announces Effort to Reduce OPEC Production Rates

Venezuelan President Nicolas Maduro said on Thursday that his country had begun discussions with the Organization of Petroleum Exporting Countries (OPEC) on mechanisms to increase the global oil price.

"He spoke with the secretary of OPEC, we are making efforts for a new meeting soon between OPEC and non-OPEC members, with Russia at the head ... to stabilize the price towards $40 (per barrel) and over $50 and $60," Maduro said on state TV, referring to Oil Minister Eulogio Del Pino.

Maduro gave no further details or explanations of the meeting.

An informal meeting of formal and informal members of OPEC could feature a discussion on a potential production freeze in September, Reuters said.

Twice this year, OPEC has refused to reduce production rates for oil, prompting its rival, Russia, to increase production as well. Iran and Saudi Arabia’s regional rivalry has prevented either side from pursuing polices that would lead to the increase of Brent barrel prices.

Other contractual oil obligations have also limited Venezuela’s path towards recovery. The Petrocaribe energy pact requires Venezuela to sell crude at a cheaper rate to specific countries in the Caribbean, even while the South American country’s own economy is struggling to stay afloat. The deal was designed to allow Venezuela to profit despite artificially low sale prices, but as the oil pricing crisis unfolded, the deal put Venezuela at a disadvantage in terms of its own source of foreign income.

Because of its Petrocaribe obligations, at the end of 2015, Venezuela owed $23 billion to countries within the contract. Adding to Venezuela’s struggles, some of the debtors haven’t been using dollars to pay their dues, and instead have been offering up exported items such as blue jeans and coffee. Cuba owes $15 billion in debt to the organization – the largest of any country in the pact.

Venezuela current sells 750,000 barrels to the United States per day, according to figures from ClipperData.

ADVERTISEMENT

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Sally on August 06 2016 said:
    The price of oil can go up after Russia leaves Ukraine.
  • The Shadow Broker on August 05 2016 said:
    Iran and Saudi have every right to pump as much oil as they damn well please. It's called supply / demand economics.

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News