Venezuela's Energy Minister, OPEC President and new OPEC Secretary General designate, said to Venezuelan reporters on Thursday that Venezuela is proposing to OPEC a new oil benchmark that would reflect real oil market.
Rodriguez said that West Texas Intermediate and Brent oil; represents only 1 millions of barrels per day while Opec crude represent more that 22 millions per day.
A new benchmark will complement the Opec price band systems, to created a good measure of the market realities.
Rodriguez complement last week declaration by Venezuela's Deputy Energy Minister for Oil, Bernardo Alvarez that called last week for "a new benchmarking price reference reflecting the real market." And Opec Oil futures markets based on three small-volume cruds distort prices and should be replaced by a new and more representative OPEC benchmark, Bernardo Alvarez, Venezuelan vice-energy minister said Tuesday.
Alvarez also said last week Speaking at the United Nations in Geneva, that Venezuela would prefer a price mechanism that stabilizes prices over a long period.
Developing oil-producing countries, he said, suffer when prices fall, closely following markets based on three small-volume cruds. "We have to differentiate between real market barriers (such as European Union taxation) and the paper or virtual market," he added.
By Elio Ohep
© 2000 Mena Report (www.menareport.com)
