Sunday, November 02, 2008

Stop Giving it Away!!!

Iran will cut its crude oil production by 199,000 barrels a day from November 1, the country's oil minister was quoted as saying Friday.

The minister, Gholam Hossein Nozari, said the production decrease is in line with an OPEC decision last week to cut production by 1.5 million barrels a day in response to a sharp fall in oil prices, according to the official IRNA news agency.

Nozari said that OPEC may hold another urgent meeting if crude prices don't rebound.

Benchmark crude prices slipped below $65 a barrel Friday on the New York Mercantile Exchange, extending declines after data showed the U.S. economy contracted in the latest quarter.

Iran is OPEC's second largest oil exporter and has traditionally opposed any crude output increases by OPEC, arguing that it would cause prices to fall.

Iran produces 4.2 million barrels of oil per day. The country's recoverable oil reserves are estimated at 137 billion barrels, or 12 percent of the world's overall reserves.

Venezuela wants OPEC oil output cut and price floor

CARACAS, Oct 30 (Reuters) - OPEC should cut oil output by 1 million barrels per day, possibly before its next scheduled meeting in December, and should set a minimum price target of $70 or $80, Venezuela's oil minister said on Thursday.

Rafael Ramirez said global demand for crude oil had slipped by 900,000 barrels per day because of global economic turmoil and warned sinking prices would cause oil investment to collapse worldwide.

"We estimate that at $70 per barrel the point arrives when projects now in visualization or in development begin to be abandoned in a massive way. This is not good for anybody," Ramirez said after opening an auction to develop three oil blocks in Venezuela's Orinoco heavy crude region.

The Organization of the Petroleum Exporting Countries chopped production by 1.5 million bpd last week to stop oil's slide, after prices more than halved from a high of $147 hit in July. At around $65 a barrel oil is at its lowest level since mid 2007.