Venezuela wants hike of OPEC price ranges

The Associated Press

Venezuela will propose an increase in the oil price range established by the Organization of Petroleum Exporting Countries at the next meeting in September, Venezuela’s oil minister said July 25.

“For the (upcoming September OPEC meeting) we’ve asked to have a technical evaluation of the price range” to determine the possibility of raising it from its current range of between US$22 and US$28, Ramirez said during a meeting between Venezuelan and Argentine business executives on Margarita Island.

Venezuelan officials haven’t suggested what the new price range should be, Ramirez said. The OPEC meeting is Sept. 15 in Vienna, Austria.

“We’ve made an important effort in (increasing production), and that’s why we’ve proposed reviewing the range because clearly we’ll need important investments to continue supplying the level of demand,” Ramirez said.

Other OPEC members, including Saudi Arabia, say they agree with the current price range. Venezuela, the world’s No. 5 oil exporter, produces more than 3 million barrels of oil a day, according to the government. Critics say the number is closer to 2.5 million. Ramirez said OPEC would continue to monitor the market before deciding whether to increase the caps on production levels.

“The important thing to note is that OPEC members are now approaching their production capacities,” Ramirez said. OPEC decided in June to raise production by 2 million barrels a day in July, and by an additional 500,000 barrels a day in August to lower oil prices that have been over US$40 a barrel this year.

But Venezuelan officials say that production hikes will not bring down oil prices, which are high because of the conflicts in the Middle East.