Bloomberg: Venezuela Sees Crude in Mid-$20s If OPEC Doesn't Act
* OPEC member seeks `equilibrium price' of $88 a barrel
* Saudis, Qatar to consider proposal, Venezuelan minister says
Oil prices may drop to as low as the mid-$20s a barrel unless OPEC takes action to stabilize the market, Venezuelan Oil Minister Eulogio Del Pino said.
Venezuela is urging the Organization of Petroleum Exporting Countries to adopt an “equilibrium price” that covers the cost of new investment in production capacity, Del Pino told reporters Sunday in Tehran. Saudi Arabia and Qatar are considering his country’s proposal for an equilibrium price at $88 a barrel, he said.
OPEC ministers plan to meet on Dec. 4 to assess the producer group’s output policy amid a global supply glut that has pushed down crude prices by 45 percent in the last 12 months. OPEC supplies about 40 percent of the world’s production and has exceeded its official output ceiling of 30 million barrels a day for 17 months as it defends its share of the market.
WNU Editor: For a country like Venezuela whose government is almost entirely dependent on oil revenues .... this is a disaster, and it is impacting everyone in Venezuela .... Study estimates record poverty levels in Venezuela, now affecting 73 percent of households (AP).
The following Washington Post editorial sheds more light on what is happening in Venezuela .... Venezuela’s dirty election approaches (Washington Post editorial)
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