Venezuela announces slash on oil production

The Venezuelan government announced Friday a slash on crude oil production by 129,000 barrels per day, from the current daily output of 3.6 million barrels. The announcement was made by Rafael Ramirez, Venezuelan energy and oil minister and president of Petroleos de Venezuela, at an extraordinary ministerial meeting of the Organization of Petroleum Exporting Countries (OPEC) in Vienna. OPEC announced at the meeting on Friday that it would slash oil production by 1.5 million barrels a day. The reduction will take effect on Nov. 1. Ramirez said that OPEC's move was very important to avoid the collapse of the oil prices. He said OPEC tried to achieve a balance between the market and reasonable prices, and that there was possibility of a new cut during the group's next meeting in Oran, Algeria, on Dec. 17.