Venezuela proposes 10-year oil price pact
"I'm going to propose in writing that a summit of Opec and non-Opec heads of state be held in first quarter 2017 to review a proposal to stabilize oil markets and defend fair prices for 10 years," Maduro said late yesterday at a rally of his political supporters in Carabobo state.
Maduro said he arrived at the proposal after speaking by telephone with Russian president Vladimir Putin, "who ratified to me personally Russia's determination to reduce its crude production in support of Opec."
Maduro said the proposal would be submitted for review at the 10 December meeting of Opec and non-Opec producers in Vienna.
He did not say where the proposed summit should be held, nor indicate the details of his long-term plan.
Venezuela views a sustained strategy of close engagement between Opec producers, and between Opec and non-Opec producers, as vital to coordinating market stabilization measures centered mainly on shared production cuts to keep the oil price in a range of about \\$60/bl, the energy ministry said.
Venezuela's objective is "to reach a balanced level matching the interests of producers and consumers. We don't want a price that's too high or too low," energy minister and state-owned PdV chief executive Eulogio Del Pino said yesterday.
Opec ministers on 30 November reached an agreement to cut their production by 1.2mn b/d to 32.5mn b/d, effective for six months from 1 January 2017. The deal is contingent on non-Opec producer countries cutting by 600,000 b/d, with Russia accounting for half of that.
Russia has said it will gradually reduce its output in the first half of next year by up to 300,000 b/d from November-December production as fast as its "technical abilities" allow.
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