Baku, Azerbaijan, Nov.21
By Leman Zeynalova – Trend:
If OPEC reaches an agreement to cut the oil output, Venezuela is likely to support it, Charles Ellinas, oil market expert, executive president at Cyprus National Hydrocarbons Company (CNHC) told Trend Nov.21.
“Venezuela is one of the countries pushing hard for OPEC limiting production, because they will benefit from higher oil prices,” said the expert.
Earlier, Venezuela and the China National Petroleum Corporation (CNPC) agreed on an investment plan of $2.2 billion, which will increase joint oil production by 277,000 barrels a day.
Venezuelan President Nicolas Maduro said after signing of the agreement that with this new deal "we will reach 800,000 barrels a day with China."
According to Venezuela's Oil and Mining Affairs Minister Eulogio del Pino, the funds will be used to finish the construction of a new oil factory in China and to increase oil production at three joint ventures in Venezuela.
Regarding the remarks made by Maduro that OPEC countries are ready to reach a "forceful" agreement on cutting oil output, Ellinas said that pressure can be placed on those not following agreed targets, but not enforcement.
“It really depends on what Saudi Arabia does, also whether Russia will support such an agreement and the signs are that it will,” he added.
In September, OPEC producers agreed during the informal meeting in Algiers to cut down the oil output to 32.5 million barrels per day (bpd) from current production of 33.24 million bpd.
How much each country will produce is to be decided at the next formal meeting of OPEC in November.
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