Venezuelan Energy Minister Alvaro Silva Calderon said Monday in a television interview and later ratified it in press conference, that the OPEC target price for year 2001 is between $ 25 to $30 a barrel. "
Silva said that major consumer nations don't complain about oil prices unless they rise above $30 a barrel. " "$25 a barrel. for Venezuela would be a reasonable price" he added.
Alvaro Silva also said that the Organization of Petroleum Exporting Countries sees world oil demand falling in the second quarter by 1.9 million barrels a day.
Silva said that the projected fall in demand is part of the reason why OPEC cut production by 1.5 million b/d.
He added that OPEC has not decided to raise or cut output in March it will depend in the analysis of the market at that time, but OPEC the "general rule" would be an output increase if the OPEC basket rises above $28 per barrel and a decrease if it falls below $22 per barrel, the group's price band system range.
Silva also said that all members are honoring its quota agreements, and the monitoring committee is analysis any deviation from members or consumers countries inventories stocks.
There is second and third level of inventories that we will have to account for if we want to really supply the right amount of oil. Silva said.
The world is now perceiving that commitment and taking OPEC seriously when OPEC says that it will raise or lower its collective production.
In reference to US President Bush's recent call to Mexico to help the US with more production and oil exports , Silva said OPEC hopes Mexico will maintain its long time policy to work " coordinated with OPEC's.
© 2001 Mena Report (www.menareport.com)
