Oil prices shoot higher on Venezuela call for output cut

0 Comments | AFP, August, 2008

LONDON (AFP) — Oil prices rose sharply on Tuesday after OPEC member Venezuela, concerned about recent lower prices, said it would ask the cartel to agree to a cut in output when it next meets in September.

New York's main contract, light sweet crude for September delivery, jumped 2.88 dollars to 114.65 dollars a barrel as a result, coming off early lows.

London's Brent North Sea crude for October rallied 2.65 dollars to 114.60 dollars.

"The market is reacting to reports that OPEC may cut production," said Veronica Smart, an analyst at the Energy Information Centre in Britain.

Venezuela will propose production cuts at the next OPEC meeting in September if oil prices continue to fall, Venezuelan Energy and Petroleum Minister Rafael Ramirez had said on...