OPEC set to cut output by 1 mln bpd in December: Venezuela

0 Comments | AFP, October, 2006

CARACAS (AFP) — Venezuelan Energy Minister Rafael Ramirez said that the OPEC cartel was preparing to cut output by some one million barrels a day starting in December in responses to sagging prices. The comments marked the latest indication that the cartel was working to prop up prices in response to prices falling some 25 percent from record highs earlier this year.

"We think this is a healthy and necessary measure because there is significant overproduction, abundant supplies on the market and this could lead to a collapse of prices," Ramirez said in an interview with state television. He added that there was a "consensus" among the ministers of the Organization of the Petroleum Exporting Countries to hold a meeting later this month to work out details of a production cut...