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Venezuelan minister predicts oil production cuts in early 2006
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Venezuelan Minister of Energy Rafael Ramirez said Wednesday he believed
that the Organization of Petroleum Exporting Countries (OPEC) will cut oil
production in early 2006.

Ramirez, also head of the country's state-owned oil company Petroleos de
Venezuela, made the remarks one day after OPEC agreed to maintain its
production ceiling of 28 million barrels per day.

"I am sure a production cut will be agreed at the beginning of next year,"
Ramirez said.

At present, international crude prices are fair at 70 U.S. dollars a
barrel, an unbroken record since August, and the prices will be maintained
for a time, said the Venezuelan minister.

He added that the market must avoid oversupply, and oil production in the
Gulf of Mexico is recovering from the damage caused by the hurricane
season.

Venezuela, the world's fifth largest oil exporter, announced earlier that
it would do all it can to defend current prices at the OPEC meeting in
January.

Oil production usually reduces at the start of the year when it gets
warmer in the United States and Europe, where a lot of oil is consumed for
heating.

Source: Xinhua




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