28-12-2016

Venezuela says to cut 95,000 bpd crude output in OPEC deal

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Venezuela said on Tuesday it will cut 95,000 barrels-per-day of oil production in the New Year in fulfillment of a producers’ deal to reduce global output and strengthen prices.

Jan. 1 is the official start of the pact by the Organization of the Petroleum Exporting Countries and several non-OPEC producers to lower production by almost 1.8 million bpd.

“Without prejudicing its international contractual obligations, from Jan. 1 2017, (state oil company) PDVSA and/or its subsidiaries will implement a reduction in the volumes of its main crude sale contracts, all in conformity with existing terms and conditions,” the Energy Ministry said.

Venezuela, a price hawk within OPEC and one of the nations worst affected by the fall in crude revenue since mid-2014, currently produces just over 2.4 million barrels of crude and condensates per day, according to ministry data.

President Nicolas Maduro has said he will soon embark on a tour of oil-producing nations to support the OPEC deal.

“I am proposing a new system, a new formula to fix markets and oil prices to enable stability, harmony, continuity,” he said on Monday, without giving further details of his itinerary or planned proposal to fellow producers.

“I aspire to at least 10 years of stability with realistic, fair prices of oil, and I am going to achieve it.”

Oil edged further above $55 a barrel on Tuesday, drawing support from expectations of tighter supply once the first output cut deal between OPEC and non-OPEC producers in 15 years takes effect from Sunday.

Source: Reuters 

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