Venezuelan government says the country is going to cut its oil output by 129,000 barrels a day from its current daily crude production. Venezuelan Minister of Energy and Oil, Rafael Ramirez announced the new reduction at an extraordinary meeting of the Organization of Petroleum Exporting Countries (OPEC) held Friday in Vienna. In an attempt to tackle the plunge in oil demand prompted by the slowing of the world economy, OPEC decided to reduce oil production by 1.5 million barrels a day. Saudi Arabia will reduce output by 466,000 barrels a day and Iran, the second largest OPEC producer, by 199,000 barrels a day. Kuwait and UAE crude oil production will be lessened by 132,000 and 134,000 barrels per day, respectively, and Nigeria will cut production by 113,000 barrels a day. Ramirez said earlier this week that OPEC 'needs to evaluate the situation in December's meeting to make another cut at the beginning of 2009.' Oil presents almost half of the Venezuelan government's budget.
Saturday, October 25, 2008
Caracas cuts oil output by 129,000 bpd
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They grew too dependent on oil. Now they have to cut production to maintain the prices. But, what they did count on is the the US is still lowering its demand on oil and with the global recession the rest of the world cant really afford the prices.
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