Venezuela calls on OPEC to control output, seeks $70 floor price - Ramirez

[Bacchus4.0]

Last edited Wed Oct 14, 2015, 09:02 AM - Edit history (1)

http://finance.yahoo.com/news/venezuela-calls-opec-control-output-183302930.html



NEW YORK (Reuters) - Venezuela, whose economy has been decimated by low oil prices, this month will unveil a bold new strategy to revive them, taking a page from OPEC's history books with a proposed price band to build an automatic floor for prices at $70 a barrel.

In an exclusive interview with Reuters, Venezuela's long-time oil minister and current United Nations ambassador Rafael Ramirez said the proposal – to be presented to a meeting of OPEC technical advisors on Oct. 21 – would reapply the old mechanism of progressive production cuts to control prices, with a "first floor" of $70 per barrel and a later target of $100 per barrel.

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President Nicolas Maduro, whose party could struggle to maintain control of Congress in a coming election, has hinted at a need to address the lowest prices in six years at a series of meetings with counterparts from Russia, Qatar, Mexico and others.

Venezuela, which is heavily dependent on oil exports, is facing a surging triple-digit inflation rate and scarcity of goods such as food and medicines due to a lack of dollars to pay for imports.

[COLGATE4]

1. I think he should have gone for the gold!

Demand a floor of $100 a barrel. It's Venezuela's right, doncha know?

[Bacchus4.0]

4. We need a foreign policy that guarantees high oil prices for Iran, Venezuela, and Russia nt

[FBaggins]

2. OPEC can't do that

The only thing that keeps US oil production from climbing farther is that they can't be certain that oil prices will stay at or above current levels. Lock in a floor of $70/bbl and US production will skyrocket again... forcing OPEC to continually cut production to maintain prices (continuing a shift away from OPEC market share)

[Bacchus4.0]

3. Correct, but oil is all they got and they are desperate. They gave up on diversifying...

economically years ago as their state controlled industry and ag have been disasters.