Venezuela's Oil Minister Alvaro Silva said Friday in a televised interview, that with the present prices a price collapse would be a true disaster for Venezuela and the world economy if oil prices return to the level of two years ago.
"We need adequate prices and Consumer nations also need stable prices" Silva said.
Silva Calderon also said that OPEC would cut oil production if necessary and would do so under its price band mechanism.
There is consensus within OPEC to cut its oil production at the extraordinary ministers meeting in Vienna Jan. 17. Silva reiterated that OPEC currently is overproducing by around 1.4 million b/d.
According to OPEC's price band system, A price be for the OPEC basket of seven crude $22/bbl , for 10 straight days triggers a 500,000 b/d output cut and production will be boosted by 500,000 barrels a day (b/d)oils exceeds $28 a barrel for 20 consecutive trading days. Last Thursday, OPEC's basket fell to $21.64/bbl
By Elio Ohep
© 2000 Mena Report (www.menareport.com)
