Venezuela has notified oil industry clients of the need to cut output in line with a recent decision by the Organization of Petroleum Exporting Countries.
State oil company Petroleos de Venezuela SA, or PdVSA, has "notified clients" of the Andean country's move to cut output by 129,000 barrels a day, PdVSA and the oil ministry said in a joint statement Tuesday. Members of OPEC met in October and decided to trim production by 1.5 million barrels a day starting Nov. 1, a decision meant to halt a dramatic slide in world oil prices.
Rafael Ramirez, Venezuela's oil minister, has already called on OPEC to cut at least an additional $1 million barrels a day this year, possibly during its coming December meeting in Algeria. Defending oil prices aims to maintain a "reasonable crude price" that can ensure the continuity of important oil industry projects, the statement added.
The price for Venezuela's basket of crude and products touched its lowest level this year at $54.55 a barrel late last week. President Hugo Chavez has vowed to soldier on with his spending plans and move the country toward socialism regardless of what oil prices might do.
However, observers said they doubt Venezuela's spending plans will manage to continue unchanged next year. The 2009 budget estimates a $60 a barrel average price, higher than standing prices for Venezuelan crude.
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