Venezuela to Cut Crude Production by 95,000 bpd
Venezuela to Cut Crude Production by 95,000 bpd

Venezuela to Cut Crude Production by 95,000 bpd

Venezuela to Cut Crude Production by 95,000 bpd

Venezuela said it will cut 95,000 barrels per day of oil production in the New Year in fulfillment of a producers' deal to reduce global output and strengthen prices.
January 1 marks the start of the pact by the Organization of Petroleum Exporting Countries and several non-OPEC producers to lower production by almost 1.8 million bpd, Reuters reported.
"Without prejudicing its international contractual obligations, from Jan. 1 2017, state oil company PDVSA and its subsidiaries will implement a reduction in the volumes of its main crude sale contracts, all in conformity with existing terms and conditions," the Energy Ministry said.
Venezuela, a price hawk within OPEC and one of the nations worst affected by a fall in crude revenue since mid-2014, currently produces just over 2.4 million barrels of crude and condensates per day, according to ministry data.
Oil Minister Eulogio Del Pino said the output deal should lead to a rebalancing of inventories, after which he forecast Brent crude would settle at a price range of around $60-$70 a barrel and Venezuela's crude basket between $45-$55 a barrel.
Venezuela's basket trades at a discount to other benchmarks because of its higher content of heavy oil. President Nicolas Maduro has said he will soon embark on a tour of oil-producing nations to support the OPEC deal.
"I am proposing a new system, a new formula to fix markets and oil prices to enable stability, harmony, continuity," he said without giving further details of his itinerary or planned proposal to fellow producers.
"I aspire to at least 10 years of stability with realistic, fair prices of oil, and I am going to achieve it."
International benchmark Brent has soared above $55 a barrel as oil prices continue a yearend rally with support from expectations of tighter supply once the first output cut deal between OPEC and non-OPEC producers in 15 years takes effect on Sunday.


Short URL : https://goo.gl/VM6yDF
  1. https://goo.gl/1uGQOX
  • https://goo.gl/R6OQ4b
  • https://goo.gl/7kV1di
  • https://goo.gl/oZp5kO
  • https://goo.gl/v4rtJH

You can also read ...

The petrochemical sector is Iran’s second-most valuable industry after oil and gas.
Bid Boland Gas Refinery project in the city of Behbahan,...
MENA Needs $260 Billion in Power Investment
Middle East and North African countries need to invest $260...
Russia Steadfast on OPEC, European Energy Supply
Russia is committed to its OPEC pact with Saudi Arabia and...
Total to Buy Direct Energie for €1.4 Billion
Oil major Total said it will buy a majority stake in French...
Crude Prices Edge Up on Lower US Inventories
Oil prices edged up on Wednesday, lifted by a reported fall in...
Revenue Top Priority of OPEC Members
The Organization of Petroleum Exporting Countries is moving...
Tehran, Moscow Willing to Extend  Oil-for-Goods Deal 
The Russian Energy Ministry is working with Iran on extension...
Oil Products Delivery to Northeast at 5.8b Liters
The Iranian Oil Pipeline and Telecommunications Company...


I am delighted to have discovered this online publication. I would like to congratulate the editors and reporters, who are doing an outstanding job. I hope you will continue to provide reliable information about Iran's economy to readers.

Add new comment

Read our comment policy before posting your viewpoints