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Venezuela eyes $100 oil price, deal with non-OPEC producers


Dollars. image source eni

Dollars. image source eni

Venezuela is pushing for a new agreement between OPEC and non-OPEC nations to stabilize oil prices, President Nicolas Maduro said, in the most serious indication yet of a renewed drive to boost prices back to $100 per barrel.

Cash-strapped Venezuela has been a historic price hawk, and a severe recession and product shortages have heightened Maduro’s need for a market recovery.

“We’re currently working on a deal that hopefully can materialize in June regarding an announcement between OPEC and some of the most important (oil) producers in the world to finish stabilizing the market in the second half of the year,” he said after a meeting with Qatar’s emir.

It is unclear how successful these efforts may be now, with global Brent prices having rebounded by nearly 50 percent from their January lows to more than $65 a barrel.

His comments come a month after Russian officials said they had been in “unprecedentedly” active consultation with OPEC nations, although there has been no tangible result from those discussions.

Officials from Russia, the world’s second-largest producer, have given no sign that they are willing to cut.
“It’s in the best interest of Venezuela and OPEC for the price of (oil) to stabilize at 100 (dollars) in the medium term,” Maduro said.

That view is at odds with many others in OPEC, with most saying they do not expect to see such prices for years to come. Some OPEC sources have suggested the group’s core Gulf members are hoping for crude to equalize at around $70 a barrel, in line with what analysts are currently projecting for 2016.

Maduro himself said in January prices would not return to $100, and told citizens, “God will provide.”

The Organization of the Petroleum Exporting Countries meets on June 5 in Vienna. The group in November shot down calls by price hawks including Venezuela for an output cut.

1 Comment
  • emmanuel kalu

    This market has no clue, market forces basically demand is changing and supply is increasing. there are increasing number of african countries producing oil, america is increasing it share along with canada. but the main thing is that consumer are reducing demand for oil, due to renewable. it is in the best interest for nigeria for the price of oil to continue to head south. this would reduce the amount of looting and allow them to focus on other sector of the economy, like agriculture.