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OPEC agreed to reduce overproduction says Venezuelan Foreign Minister

Venezuelan Foreign Minister Rafael Ramirez Venezuelan Foreign Minister Rafael Ramirez
CARACAS, Venezuela, Nov 28 - Venezuelan Foreign Minister Rafael Ramirez says that at the OPEC meeting held Thursday in Austria the oil cartel members agreed "to reduce overproduction" of petroleum, which is over 30 million barrels per day, to try and contain the recent precipitous drop in price.

Although the Organization of Petroleum Exporting Countries decided Thursday not to lower the 30 million barrel production "ceiling," in effect since December 2011, it did agree to eliminate any production above that level, Ramiez told the Caracas-based Telesur television network, in Vienna.

The 30 million barrel "ceiling" was agreed to by the cartel three years ago and Venezuela had believed that it would be a good move right now to reduce that level because of the recent oil price drop, but none of the other OPEC members publicly supported that suggestion.

However, Ramirez emphasized that "all of us within OPEC have the common interest of, first, maintaining stability in the market and, next, a progressive recovery in the price, as there should be, because in matters of this kind there are no miracles," and therefore the idea of eliminating any production above the 30 million barrel ceiling was attacked.

Overproduction within OPEC is "at least 500,000 barrels" per day, he calculated.

"We have agreed to work for stability" and, in Venezuela's case, also "to work to maintain contact with non-OPEC countries," he emphasized.

Thus, he said he was pleased that "two days before (Thursday's) meeting" he had met with authorities from Mexico and Russia, two big non-OPEC producers and exporters, "agreeing to (hold) consultations" periodically to evaluate the market situation. 

In the meantime, Jamaica's Energy Minister Phillip Paulwell says all categories of  petroleum products are expected to record further price declines. He told RJR News that this will have a positive effect on energy costs as well as the country's foreign currency reserves.

There's confirmation that Jamaican consumers will see a further drop in fuel prices following yesterday's announcement by oil cartel OPEC that it will not cut petroleum production, despite a plunge in prices in recent months. Managing Director of  the oil refinery, Petrojam, Winston Watson, says in the short term prices at the pumps will continue to fall. He says while the oil market remains volatile, over the next three months, Jamaicans will fork out less for fuel
Following the decision by OPEC, the price of  Brent crude oil, a global benchmark, fell an additional $4  to a four-year low of  about $73. American crude dropped below $70.
Last modified onFriday, 28 November 2014 07:47

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