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Venezuela’s oil minister says oil price might rise if OPEC agrees on optimizing production

November 30, 2016, 13:47 UTC+3

Price of oil might reach $60 per barrel quite fast, according to Venezuela's Oil Minister Eulogio del Pino

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VIENNA, November 30. /TASS/. Price of oil could rise immediately by $5-7 and might reach $60 per barrel quite fast if OPEC decides to optimize oil production, Venezuela's Oil Minister Eulogio del Pino told reporters.

"Oil prices may reach the level of $60 fast. If we make the decision today - the price will rise immediately by $5-7. We see that the reaction can be quick," he said.

Price of futures contract for Brent crude with February delivery rose by 5.8% to $50.1 per barrel in the course of a trading session on London’s ICE for the first time since October 31.

The dollar decreased by 0.51% to 64.78 rubles, the euro - by 0.54% to 68.94 rubles.

Oil price is growing against the OPEC meeting in Vienna, where ministers of oil-producing countries might adopt agreement on limiting oil production. Preliminary agreements on the issue were reached at a meeting in late September in Algeria.

Specific cases 

It is necessary to spare Iran, Libya and Nigeria from the need to reduce crude oil production, del Pino said.

"Iran, Libya and Nigeria are specific cases. We cannot allow Iran to cut production after the sanctions," he said, adding that there will be separate decisions regarding those countries.

Iran’s officials have repeatedly said recently that the country has nothing to do with the oil market’s destabilization as other countries are responsible for it and they have to assume measures to normalize the situation, while Iran has the right to boost crude production to at least 4-4.2 million barrels it had before international economic sanctions were imposed against it. Also, the country has the most reason to restore its previous share in OPEC - 13% of the total volume of crude oil output of the cartel’s members. Given the existing volumes, Iran has to produce at least 4.4 mln barrels per day in order to regain those 13%.

In mid-October Iran’s Oil Minister Bijan Namdar Zanganeh said that the country had almost reached the pre-sanctions level as its daily oil output amounted to 4 mln barrels.

In the framework of OPEC meeting, oil ministers of oil-producing nations might adopt an agreement to reduce oil production. Preliminary agreements on the issue were reached in late September in Algeria.

Meeting with non-OPEC countries

OPEC member-states and non-OPEC countries including Russia, will meet in Vienna in the next few days to discuss the issue of oil production optimization, del Pino said.

"We have taken a decision to meet in Vienna with non-OPEC countries in the next few days," he said.

As was reported earlier the meeting with non-OPEC states might be held following the OPEC summit, though later it was reported that the meeting might be postponed. Also, the expert-level meeting with representatives of non-OPEC countries, was scheduled for November 28, though later it was cancelled.

According to del Pino, Venezuela sees positive signals for making an agreement on oil production optimization between OPEC member-states and non-OPEC members, including Russia.


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