Minister of Oil, Eulogio Del Pino, assured the Venezuelan proposal to freeze crude to January level, impacts positively today in the recovery of oil prices in the international market. If it is true the initiative was not approved by the 18 producing countries gathered in Doha, Qatar in April, this country plus Russia and Saudi Arabia agreed to the proposal and contributed to reach present levels.
Minister of Oil, Eulogio Del Pino, assured the Venezuelan proposal to freeze crude to January level, impacts positively today in the recovery of oil prices in the international market. If it is true the initiative was not approved by the 18 producing countries gathered in Doha, Qatar in April, this country plus Russia and Saudi Arabia agreed to the proposal and contributed to reach present levels.
We passed from 18 dollars per barrel in Winter, to an average in the last few weeks of 40 for the Venezuelan fuel basket, said Del Pino.
The also president of Petroleos de Venezuela (Pdvsa) said, also, that the low prices do not favor producers and investors, estimating a just price between 70 and 80 dollars per barrel to sustain development projects in the nation.
At present, the Organization of Petroleum Exporting Countries (Opec) operates with an average of 46.27 and the Venezuelan oil sells for about 39.75 dollars per barrel.
The fuel's quotation worldwide remains low since the middle of 2014, the longest cycle registered with that trend, since 1971.
Reports of Opec consider that is due, first of all, to the rise of international inventories of the so-called black gold due to the strategy used by the United States to increase its production in an unprecedented way.
The Opec will evaluate in November the Venezuelan proposal, consistent in assigning to each nation a mínimum and máximum production, in order to créate a margin in the obtention of oil, not of prices, in order to reach a balance when a country has problems and others are at a top of extraction.
Source: PL