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Page added on August 10, 2016
Venezuela’s Maduro Says He Discussed Oil Prices With Saudi King
Venezuelan President Nicolas Maduro said he spoke to Saudi Arabia’s king about boosting oil prices and is reaching out to the heads of state of fellow producers Russia, Iran and Qatar as his country reels under the crude crash.
Venezuela, holder of the world’s biggest oil reserves, wants to stabilize prices that fell to a four-month low last week, Maduro said on state-run television Tuesday night. The longer-term goal is crude at around $70 a barrel, he said.
Cash-strapped Venezuela has seen its economy implode over the past two years as global crude prices declined, with shortages of food, medicine and other basic goods fanning public discontent with the president. Alberto Ramos, an economist at Goldman Sachs Group Inc., said in a July 22 note that the country has fallen into a “depression” with signs of hyperinflation.
“The price of oil, for necessity, can and needs to rise to $70 a barrel,” Maduro said. “It’s easy. The economy would assimilate that price perfectly, and it would be a motor for economic growth worldwide. We have a plan that’s been assumed and approved by OPEC and non-OPEC producers, and we’re going to keep building consensus about the plan.”
Weak demand may persist as the summer driving season ends in the U.S. and fuel inventories stay high, the Organization of Petroleum Exporting Countries said in its monthly report Wednesday. The group will hold informal talks on the sidelines of a conference in Algiers next month, though OPEC has shown no signs of ditching the Saudi-led strategy of letting prices fall to maximize market share.
Production Drop
Maduro said he plans to talk with the emir of Qatar and was seeking meetings over the next two months with Russian President Vladimir Putin, Iranian President Hassan Rouhani and Ecuador’s President Rafael Correa. The country’s crude production fell to 2.1 million barrels a day in July, its lowest since 2003, according to the OPEC report.
“We’re on the path to the necessary stabilization at a moderate point, and I hope a high price, in a process of market equilibrium,” Maduro said.
Brent, the global benchmark crude, fell 38 cents to $44.60 a barrel on the London-based ICE Futures Europe exchange at 11:10 a.m. New York time.
10 Comments on "Venezuela’s Maduro Says He Discussed Oil Prices With Saudi King"
Plantagenet on Wed, 10th Aug 2016 8:24 pm
Mauro is right that the only way to end the oil glut is to cut global oil production. But its hard to imagine that Saudi Arabia will agree to cut oil production while allowing Iran to grow their oil production.
And Iran’s current policy is to increase their oil production and oil exports.
Cheers!
Plantagenet on Wed, 10th Aug 2016 8:25 pm
Oh-oh. Spelling error. Make that “Maduro is right….”
Anonymous on Wed, 10th Aug 2016 11:38 pm
Its not clear what Maduro expects talking to the ‘sauds’, or any of the other amero-zionist controlled, GCC puppets will accomplish. The so-called ‘oil price war’, is hurting Venezuela exactly as the uS intended. If Maduro wants to see something ‘done’ about oil prices, he should talk to washingdum and tel aviv about it, not middle-men like the ‘sauds’. And if he were do that, would they tell him? That current oil prices are ‘working as intended’? They might tell him to resign so the uS could install a corporate-friendly regime willing to privatize his nation’s oil resources. Or they might just shrug and say, it’s the ‘free market’ working its magic.
Any way you look at it, the ‘sauds’ are still working hand in glove with the uS and its ‘allies’ to put the screws to President Maduro and his nation. If such a meeting took place, the ahrabs would nod and listened politely, and then keep doing exactly what washingdum and tel aviv tell them to.
GregT on Thu, 11th Aug 2016 1:01 am
“Mauro is right that the only way to end the oil glut is to cut global oil production.”
The only way to end ‘The Oil Glut™’, is to lower oil prices to the point that the world’s economies can recover from the global financial crisis. Unfortunately, that would force even more of the world’s oil producers into dire straits.
Quite the predicament…………
Cloggie on Thu, 11th Aug 2016 4:23 am
A cut in oil production would be desirable to curb consumption and stimulate the energy transition but politically, the world’s major oil producers are so far apart that a seventies OPEC-like cartel is out of the question.
Truth Has A Liberal Bias on Thu, 11th Aug 2016 6:26 am
Anybody who thinks KSA is Americas lap dog obviously is a retard who didn’t read the recently declassified 29 pages of the 9/11 report. I’d suggest it’s the other way around. USA is KSA’s lap dog. It seems to me that when KSA says ‘jump’ America asks ‘how high?’. What a pathetic bunch of conspiracy doom loop losers you all are.
yoshua on Thu, 11th Aug 2016 9:11 am
Low oil prices destroys demand. Oil producing nations with falling revenues from oil exports are forced to also cut imports.
Since the oil production costs did not decline equally with the declining oil price, their currencies started to collapse with the collapsing oil price.
A devalued currency also destroys demand for imports, the amount of energy as goods and calories a nation can afford import, as a desperate way of cutting a nations energy use in their production of energy or oil.
Most major oil producing nations currencies collapsed with the collapse of the oil price. The only nations that broke that trend was Saudi and company, but they are on the other hand now burning through their dollar reserves.
Kenz300 on Thu, 11th Aug 2016 12:09 pm
As Iran and Libya continue to increase production………
more bankruptcies will follow………….
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Kenz300 on Thu, 11th Aug 2016 12:12 pm
The sooner the world transitions away from fossil fuels the better…….. NO MORE WARS FOR OIL………
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IPissOnLoser on Thu, 11th Aug 2016 12:15 pm
Venezuela tar sand have an EROEI between 0 and 1. It means it is a energy sink not an energy producer. You cannot use energy from tar sand to produce tar sand.
Venezuela was capable of extracting tar sand because it was using hydro electricity. But now because the water level are low, Venezuela cannot uses electric to extract oil.
So this oil will stay in the ground useless they build more hydro dams or some nuclear power plant.
This is not a money issue, it is a energy balance equation issue. The equation cannot balance because it is missing hydro-energy.