Venezuela, Ecuador to Propose Output Cuts: OPEC Reality Check
(Bloomberg) -- As the last of the OPEC ministers make their way to Vienna, Venezuela and Ecuador said they would seek curbs on production at Friday’s meeting in order to boost prices.
Venezuela will propose a 5 percent production cut, state newspaper Correo Del Orinoco reported, citing President Nicolas Maduro. Ecuador will suggest ways to improve oil prices through output controls, the South American nation’s oil ministry said on its Twitter account.
While the majority of OPEC members would agree to a reduction in output, Saudi Arabia and other Persian Gulf Arab countries are opposed, Shana reported Wednesday, citing Mehdi Asali, director general of OPEC and energy forums at the Iranian Ministry of Petroleum. The group needs to reach a consensus among all members before it can change its output target.
OPEC pumped 32.1 million barrels a day in November, exceeding its 30 million-barrel quota for an 18th month, according to a Bloomberg survey of companies and analysts. Iran has said it plans to pump an additional 500,000 barrels a day once international sanctions over its nuclear program are lifted.
Ministers are expected to decide against cutting production on Dec. 4 even as crude prices languish near a three-month low. That will leave most OPEC members unable to balance their budgets, with only Qatar able to do so if Brent crude averages $57.50 a barrel next year, as forecast.
Following are the latest comments from OPEC members and analysts. The respective shares of supply are based on October levels. The estimates for the price that each member needs to balance its budget are from the International Monetary Fund unless stated otherwise.
* Price needed: $96
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