Alvaro Silva Calderon, Venezuela's Energy Minister said in an interview on a television program Tuesday, that the excess of supply in the world's market and the inventories of crude oil will determine the size of cut in the oil production OPEC will decide on its next price committee meeting on Jan. 17.
"Currently, there's oversupply of around 1.5 million barrels a day (b/d) and probably those barrels are in secondary and third inventories" Silva Calderon said.
"These quantities need to be clearly defined and analyzed to determine the final amount of the cut," " we need to avoid a price crash like the one in 1998", he added
Silva reiterated that OPEC role is to maintain price stability in the oil market and that is what producers and consumers want.
Among OPEC members there is a consensus to cut crude oil production but we have not decided the size of the reduction, this will be done on Jan. 17.
By Elio Ohep
© 2001 Mena Report (www.menareport.com)
