Venezuela says OPEC should cut output to prevent price crash

Caracas (Platts)--23May2005

Venezuela believes OPEC should consider cutting production to avoid a possible
price collapse, oil minister Rafael Ramirez said Saturday. "We will have to
evaluate a possible cut in production," Ramirez told reporters. "That is what
we'd have to look at to avoid ... a price collapse," he said, noting that oil
prices have fallen substantially from their historic highs earlier this year.
Indeed, Ramirez suggested that current oil prices are already on the low side
of what Venezuela considers a "fair" price. Venezuela's basket of crude and
products would ideally trade at around $40/bbl, Ramirez said, indicating a WTI
benchmark price of around $50. 

Venezuelan President Hugo Chavez said earlier this month in Brazil that a
suitable price range for OPEC oil would be between $40 and $60 a barrel. OPEC
oil ministers plan to meet in Vienna Jun 15 to discuss output levels. "We will
do whatever is necessary to defend the price of oil," Ramirez said.

Read more about OPEc in Platts Guide at
http://www.platts.com/Oil/Resources/News%20Features/opec/index.xml

Copyright © 2005 - Platts

Please visit:  www.platts.com

Their coverage of energy matters is extensive!!.