Venezuela Says OPEC May Cut Production

The Pittsburgh Post-Gazette ^ | Thursday, Nov. 27, 2003 | Associated Press

[Willie Green]

For education and discussion only. Not for commercial use.

CARACAS, Venezuela (AP) -- OPEC may decide to cut production quotas at its December meeting if it decides the market is oversupplied, Venezuela's oil minister said Thursday.

"In the case of oversupply, we could curb output," Rafael Ramirez told reporters.

Ramirez's remarks came three days after crude futures plunged 6 percent on the New York Mercantile Exchange. The drop followed an estimate released by tanker-tracking firm Petrologistics saying that the Organization of Petroleum Exporting Countries appeared to be overproducing its output ceiling by 1 million barrels in November.

Prices rose but didn't fully recover at the end of the short trading week Wednesday, settling 2 percent higher at above $30 a barrel on the Nymex.

Analysts and traders expect OPEC to admonish its members for overproducing but stop short of changing its output ceiling.

Still, traders and analysts are wary following the group's surprise decision in late September to cut quotas by 3.5 percent to 24.5 million barrels a day.

Ramirez also reiterated Venezuela's stance against an OPEC hike.

[Willie Green]

Senate Gives Up on Energy Bill for 2003
GOP pulled no punches in struggle for Medicare bill

Well who needs energy anyway when the Government's gonna supply us with drugs? </sarcasm>

[joesnuffy]

We should be invading Venezuela...a lot closer than the M.E....and easier to occupy imo

[marron]

If they cut production, the resulting price rise will only encourage drilling everywhere else. That directly cuts into their market share, and directly contributes to the long term low cost of oil.

Venezuela has a particular problem, though, in that its own oil industry is in a shambles. Since it can't increase production in the short term, its best hope is to encourage the others to also cut production, so it can maximize profit on what it has. But if history is any guide, the others will promise to cut production but won't actually do it.

[Willie Green]

If they cut production, the resulting price rise will only encourage drilling everywhere else.

Nevermind me.
I'm just checking the thread to make sure I posted the link to "Senate Gives Up on Energy Bill for 2003".

(Yep. It's still there!)

[marron]

"If they cut production, the resulting price rise will only encourage drilling everywhere else."

Nevermind me. I'm just checking the thread to make sure I posted the link to "Senate Gives Up on Energy Bill for 2003".

I said it will encourage drilling everywhere else. I never said it would encourage drilling here, that would take an act of congress... (joke)